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 1 and Year 2.

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Answer 1

Question

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Problem No. 3 The business assets of Glea Yares and Eunice Alico appear below: Yares Alico Cash P 10,000 P 25,000 Accounts Receivable 245,000 565,000 Inventories 122,000 260,000 Land 664,000 Building 938,000 Furniture and Fixtures Total 87,000 P1,128,000 36,000 P1,824,000 000,00 000,000 19 000,008 Account Payable Notes Payable P 178,000 200,000 Yare, Capital diw 750,000 P 245,000 345,000 adi to omen Alicol, Capital Total P1,128,000 1,234,000 P1,824,000 On March 5, 2025, Yares and Alico agreed to form a partnership contributing their assets and equities subject to the following adjustments: qining arboj su to nam a. Accounts receivable of P15,000 in Yares' books and P30,000 in Alico's are uncollectible. b. Inventories of P5,500 and P6,500 are worthless in Yares' and Alico's respective books. Required: 1. In the books of Yares, prepare the necessary journal entries: a. To record the adjustments to Yares' assets b. To close the books of Yares of viande no 251qgque oroa snemu ni 2. In the…

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Answer 2

Question

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Answer 3

Question

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Answer 4

Question

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Answer 5

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 6

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

Answer 7

Chapter 9, Problem 9.4CP

(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 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 1 and Year 2.

Answer 8

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

Answer 9

(b)

To determine

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

Answer 10

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 11

(c)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 12

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Answer 13

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Answer 15

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Solution Summary: The author explains accounts receivable turnover, which is calculated by dividing the net credit sales by the average amount of net accounts.

To calculate: The day’s sales in receivables at the end of Year 1 and Year 2.

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Chapter 9 Solutions