Question

NDM has a current accounts receivable balance of $527 167. Credit sales for the year just...

NDM has a current accounts receivable balance of $527 167. Credit sales for the year just ended were $5 938 261. How long did it take on average for credit customers to pay off their accounts during the past year?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

NDM has a current accounts redeivable balance of $527 167

Credit sales for the year ended were $ 5938 261

The average for credit customer to pay off their accounts during the past year is about 33 days

Receivables turnover = sales/accounts receivable

= $5,27,167/$59,38261 = 11.2644 times Days' sales in receivables = 365 days/receivables turnover = 365/11.2644 = 32.40 days On average, it took customers about 33 days to pay off their accounts during the past.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Twist Corp. has a current accounts receivable balance of $317,615. Credit sales for the year just...
Twist Corp. has a current accounts receivable balance of $317,615. Credit sales for the year just ended were $2,947,600. a.   What is the receivables turnover? What is the days' sales in receivables? Griffin’s Goat Farm, Inc., has sales of $659,000, costs of $235,000, depreciation expense of $40,000, interest expense of $29,000, and a tax rate of 24 percent. The firm paid out $111,000 in cash dividends, and has 40,000 shares of common stock outstanding. a.   What is the earnings per...
During the current accounting period, revenue from credit sales is $791,000. The accounts receivable balance is...
During the current accounting period, revenue from credit sales is $791,000. The accounts receivable balance is $52,680 at the beginning of the period and $64,200 at the end of the period. Which of the following statements is correct? The receivables turnover ratio is 27.1. On average, it takes 13.5 days to collect payment from credit customers. The receivables turnover ratio is 13.5. On average, the company sells its inventory every 27.07 days.
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $835,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,760,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,250,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,150,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $450,000; allowance for uncollectible accounts at the beginning of the year, $34,000 (credit balance); credit sales during the year, $1,700,000; accounts receivable written off during the year, $25,000; cash collections from customers, $1,850,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $715,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,220,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,380,000. Bad debt expense is estimated at 1.1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $440,000; allowance for uncollectible accounts at the beginning of the year, $33,000 (credit balance); credit sales during the year, $1,650,000; accounts receivable written off during the year, $24,000; cash collections from customers, $1,800,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $595,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,680,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $370,000; allowance for uncollectible accounts at the beginning of the year, $26,000 (credit balance); credit sales during the year, $1,300,000; accounts receivable written off during the year, $17,000; cash collections from customers, $1,200,000. Assuming the company estimates that future bad debts will equal 9% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT