Nite
sales- 112,500
beginning receivables, net- 19,000
ending receivables- 18,500
Day
sales- 32,000
beginning receivables, net-...
Nite
sales- 112,500
beginning receivables, net- 19,000
ending receivables- 18,500
Day
sales- 32,000
beginning receivables, net- 3,500
ending receivables, net- 4,400
Compute the following for each company:
1.
Accounts receivable turnover. (Assume all sales were credit
sales.)
2.
Average collection period.
Grayhawk Company reported net credit sales of $588,000 for the
year ending December 31, 2019. On...
Grayhawk Company reported net credit sales of $588,000 for the
year ending December 31, 2019. On January 1, 2019, the Allowance
for Doubtful Accounts had a credit balance of $14,400. During 2019,
$24,000 of uncollectible accounts receivable were written off.
Grayhawk has experienced bad debt losses of 3% of credit sales in
prior periods. Using the percentage of credit sales method, what is
the adjusted balance in the Allowance for Doubtful Accounts at
December 31, 2019?
A) $17, 640
B)...
Newark Company has provided the following information:
Cash sales, $540,000
Credit sales, $1,440,000
Selling and administrative...
Newark Company has provided the following information:
Cash sales, $540,000
Credit sales, $1,440,000
Selling and administrative expenses, $420,000
Sales returns and allowances, $99,000
Gross profit, $1,450,000
Increase in accounts receivable, $64,000
Bad debt expense, $42,000
Sales discounts, $52,000
Net income, $1,030,000
How much are Newark's net sales?
Multiple Choice
$1,829,000.
$1,787,000.
$1,916,000.
$1,980,000.
credit sales = $8,000. Beginning and ending accounts receivable
= $1,800 and $1,400, respectively. What are...
credit sales = $8,000. Beginning and ending accounts receivable
= $1,800 and $1,400, respectively. What are collections and the age
of accounts receivable, assuming a 360-day year?
A. $7,600 and 36 days.
B. $7,600 and 72 days.
C. $8,000 and 10 days.
D. $8,400 and 36 days.
E. $8,400 and 72 days.
If you place a control that the computer checks run-to-run total
of beginning receivables, plus sales...
If you place a control that the computer checks run-to-run total
of beginning receivables, plus sales transactions with the sum of
ending receivables, which of the following risks will you be
addressing?
A. Invoices not journalized or posted to customer accounts
B. Sales invoices recorded in the incorrect accounting
period
C. Products shipped without shipping documents being
generated
D. Sale made without credit approval
Blazer Company has outstanding Accounts Receivables of
$1,000,000 on December 31 based on Credit Sales of...
Blazer Company has outstanding Accounts Receivables of
$1,000,000 on December 31 based on Credit Sales of $3,000,000 for
the year. Rich Carvajal, Chief Accountant at Blazer, estimates that
5% of their receivables will be uncollectible. He also determines
that the Allowance for Doubtful Accounts has a $7,000 credit
balance on December 31 prior to any adjustments. On March 1, Blazer
determines that a $5,000 account owed by GTech Corp will be
uncollectible.
If Blazer uses the Allowance Method to account...
A firm has a Days Receivables Outstanding (DRO) of 34 days. Its
annual sales outstanding are...
A firm has a Days Receivables Outstanding (DRO) of 34 days. Its
annual sales outstanding are $2.7 billion. If it could reduce its
DRO to 30 days, how much cash could it free up for other
investments? Assume a 360-day year.
A
$30,000,000
B
$21,250,000
C
$18,750,000
D
$20,000,000
1. Pac, Capital is $1,000 on Jan 1, 20xx. The company had credit
sales of $90,000;...
1. Pac, Capital is $1,000 on Jan 1, 20xx. The company had credit
sales of $90,000; cash collections of accounts receivable of
$80,000; cost of goods sold of $30,000; operating expenses of
20,000; a gain of $10,000; owner withdrawals of $4,000 and owner
investments of $1,000 during the year. Determine the December 31,
20xx balance of Pac, Capital.
a.
$74,000
c. $128,000
b.
$48,000
d. $ 55,000
2. REM, Inc. had assets of $44 and liabilities of $18...
In 2020, Nash Company has net credit sales of $1,030,000 for the
year. It had a...
In 2020, Nash Company has net credit sales of $1,030,000 for the
year. It had a beginning accounts receivable (net) balance of
$100,000 and an ending accounts receivable (net) balance of
$106,000.
Compute Nash Company’s accounts receivable turnover.
(Round answer to 1 decimal place, e.g.
2.5.)
Accounts receivable turnover
times
Compute Nash Company’s average collection period in days.
(Round answer to 1 decimal place, e.g. 2.5. Use 365
days for calculations.)
Average collection period
days
sel, Inc. reported net sales revenue of $600,000 in 2018 and
$500,000 in 2019. The company’s...
sel, Inc. reported net sales revenue of $600,000 in 2018 and
$500,000 in 2019. The company’s ending net receivables were
$120,000 during 2017 and $130,000 during 2018. At December 31,
2019, the company had Accounts Receivable of $148,000 and an
unadjusted debit balance in its Allowance for Doubtful Accounts
account of $1,000. The company reported Bad Debt Expense of $6,000
during 2019.
Required:
Determine the net receivables at December 31, 2019.
Calculate the receivables turnover ratio for 2018 and
2019....