FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![### Accounts Receivable Turnover and Days' Sales in Receivables
A company reports the following financial data:
- **Sales:** $284,700
- **Average Accounts Receivable (net):** $54,750
**Objective:**
Determine:
1. The accounts receivable turnover.
2. The days' sales in receivables.
**Instructions:**
When required, round your answers to one decimal place. Assume a 365-day year.
#### 1. Accounts Receivable Turnover
**Formula:**
\[ \text{Accounts Receivable Turnover} = \frac{\text{Sales}}{\text{Average Accounts Receivable (Net)}} \]
**Calculation:**
\[ \text{Accounts Receivable Turnover} = \frac{284,700}{54,750} \]
**Result Placeholder:**
\[ \boxed{\text{Input Calculation Result Here}} \]
#### 2. Days' Sales in Receivables
**Formula:**
\[ \text{Days' Sales in Receivables} = \frac{365 \text{ days}}{\text{Accounts Receivable Turnover}} \]
**Calculation:**
First compute the Accounts Receivable Turnover using the result from step 1.
Then,
\[ \text{Days' Sales in Receivables} = \frac{365}{\text{Accounts Receivable Turnover Result}} \]
**Result Placeholder:**
\[ \boxed{\text{Input Days Result Here}} \text{ days} \]
**Time Remaining:**
1:48:20 (Note: This is the remaining time for an unspecified task, not part of the educational content.)
### Visual Representation
This section does not contain any graphs or diagrams. Inputs are required in the placeholders provided for the final turnover and days calculation.](https://content.bartleby.com/qna-images/question/ca679eb4-412f-4cd7-9e7c-d46cbc682971/bca10ad5-cf94-41a6-ba1b-bb080bfb4687/yierfu_processed.jpeg)
Transcribed Image Text:### Accounts Receivable Turnover and Days' Sales in Receivables
A company reports the following financial data:
- **Sales:** $284,700
- **Average Accounts Receivable (net):** $54,750
**Objective:**
Determine:
1. The accounts receivable turnover.
2. The days' sales in receivables.
**Instructions:**
When required, round your answers to one decimal place. Assume a 365-day year.
#### 1. Accounts Receivable Turnover
**Formula:**
\[ \text{Accounts Receivable Turnover} = \frac{\text{Sales}}{\text{Average Accounts Receivable (Net)}} \]
**Calculation:**
\[ \text{Accounts Receivable Turnover} = \frac{284,700}{54,750} \]
**Result Placeholder:**
\[ \boxed{\text{Input Calculation Result Here}} \]
#### 2. Days' Sales in Receivables
**Formula:**
\[ \text{Days' Sales in Receivables} = \frac{365 \text{ days}}{\text{Accounts Receivable Turnover}} \]
**Calculation:**
First compute the Accounts Receivable Turnover using the result from step 1.
Then,
\[ \text{Days' Sales in Receivables} = \frac{365}{\text{Accounts Receivable Turnover Result}} \]
**Result Placeholder:**
\[ \boxed{\text{Input Days Result Here}} \text{ days} \]
**Time Remaining:**
1:48:20 (Note: This is the remaining time for an unspecified task, not part of the educational content.)
### Visual Representation
This section does not contain any graphs or diagrams. Inputs are required in the placeholders provided for the final turnover and days calculation.
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- please solve with proper explanation , computation ,formula with steps answer in text thanksarrow_forwardPlease read and enter answers carefully using the table provided.arrow_forwardThe following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Market, Inc. Supply, Inc. Accounts receivable $ 58,600 $ 76,600 Allowance for doubtful accounts 2,748 3,156 Sales revenue 646,960 907,100 Requireda. What is the accounts receivable turnover for each of the companies?b. What is the average days to collect the receivables?c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?arrow_forward
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