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 simple, it indicates the number of times the average amount of net accounts receivables has been 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 for Year 2 and Year 1.
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 simple, it indicates the number of times the average amount of net accounts receivables has been 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 for Year 2 and Year 1.
Solution Summary: The author calculates accounts receivable turnover by dividing net credit sales by the average amount of net accounts.
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 simple, it indicates the number of times the average amount of net accounts receivables has been 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 for Year 2 and Year 1.
(2)
To determine
To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.
(3)
To determine
To conclude: The Efficiency of Incorporation L’s management in collecting accounts receivables.
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JO NAT
CALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL
ENTRY Selected information from the payroll register of Ebeling's Dairy for the week
ended July 7, 20--, is shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate
is 0.6%, both on the first $7,000 of earnings. Social Security tax on the employer is
6.2% on the first $128,400 of earnings, and Medicare tax is 1.45% on gross earnings.
Taxable Earnings
0.0
dmatge2 to 26
oll evolqis gas basM BY Cumulative Pay
Before Current
Earnings
600
dad no Click, Katelyn 1 ATUT $ 6,650 $ 800
onibbs Employee Name
Coombs, Michelle
ol noam Fauss, Erin
Lenihan, Marcus
A9
6,370
Current
(SVO) Aeg
Weekly Unemployment Social
Earnings
Compensation Security
720
repare the jour entry to
ended
900
S
011200133,460
33,460 tumo 1,200
AY McMahon, Drew MYA Я0
obsH Newell, Margballe
aid ni Stevens, Matt basing
210
6,930
127,050 JAЯ4,440
35,470 R
38,675 80
K
ed July 15 of the cur
(EOJ) A2-03
2E212 3/20
1,110 YER PAYROLL TAXES Eam-…
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