Accounts receivable turnover Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

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Answer 1

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

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For the year, Imperial Corp.'s gross profit is $210,000, sales are $350,000, and ending inventory is $80,000. If net purchases are $120,000, what is the COGS? a. $110,000 b. $140,000 c. $150,000 d. $160,000

Answer 2

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

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Answer 3

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

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Answer 4

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

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Answer 5

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

Answer 6

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

Answer 7

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.

Answer 8

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

Answer 9

(b)

To determine

To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

Answer 10

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

Answer 11

(c)

To determine

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the accounts receivable turnover and average collection period of Corporation F for the year 2017.

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To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.

To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

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