FUNDAMENTAL ACCOUNTING PRINCIPLES
FUNDAMENTAL ACCOUNTING PRINCIPLES
25th Edition
ISBN: 9781307703733
Author: Wild
Publisher: McGraw Hil
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Chapter 7, Problem 15QS
To determine

Concept Introduction:

Days Payable outstanding (DPO): Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day’s payable outstanding is calculated using the following formula:

  Days payable outstanding = Accounts Payable * 365Cost of Sales 

Requirement-a:

The day's payables outstanding of Wenz Co. for year 1 and Year 2

To determine

Concept Introduction:

Days Payable outstanding (DPO): Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day’s payable outstanding is calculated using the following formula:

  Days payable outstanding = Accounts Payable * 365Cost of Sales 

Requirement-b:

If company has negotiated better credit terms in year 2 as compared with year 1

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Chapter 7 Solutions

FUNDAMENTAL ACCOUNTING PRINCIPLES

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