FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is the receivables collection period?
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- A firm has $400,000 in credit sales and $100,000 in accounts receivable.Compute accounts receivable turnover and average number of collectiondays. How do these numbers relate to the terms of 2/10, n/30?arrow_forwardWhat is the average investment in receivable on these general accounting question?arrow_forwardDiviney Corporation's net sales and average net trade accounts receivable were $8,710,000 and $630,000, respectively. Calculate Diviney's accounts receivable turnover. Round your answer to two decimal places.arrow_forward
- ABC LTD's average trade receivables and trade payables for an accounting period are R12.5m and R18m respectively. Credit sales and credit purchases for the period are R210m and R78m respectively. The trade receivables collection period and the trade payables collection period are: 22 days and 84 days or 59 days and 31 days or 6.2 days and 11.7 days or 16.8 days and 4.3 days.arrow_forwardThe following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What ReDo's receivables collection period (DSO)? In your computations, assume there are 360 days in a year. 42.50 days O 72.99 days 32.09days Accounts receivable Total credit sales Accounts payable O 11.22daysarrow_forwardGeneral accounting questionarrow_forward
- XYZ Corporation has credit sales of $10,640,000 and receivales of $1,520,000. What is the receivales turnover and what is the average collection period (days sales outstanding) ?arrow_forwardI need this general accounting question answersarrow_forwardCrane Corp.currently has accounts receivable of $1,093,000 on net sales of $7,334,000. What are its accounts receivable turnover ratio and days' sales outstanding (DSO)? (Round accounts receivable turnover ratio answer to 2 decimal places, e.g. 12.25 and days' sales outstanding answer to 1 decimal place, e.g. 12.2. Use 365 days for calculation.)arrow_forward
- Can you please give me correct answer the general accounting question?arrow_forwardWhat is the receivable turnover?arrow_forwardOriginal Media Sign Incorporated sells on account. Recently, Original reported the following figures Net Credit Sales Net Receivables at end of year Read the requirements. $ 2024 2024 545,100 $ 38,900 2023 Y 602,500 40,100 Requirement 1. Compute Original's days' sales in receivables for 2024. (Round to the nearest day.) First calculate the accounts receivable turnover. (Abbreviations used: AR turn = accounts receivable turnover ratio, Cash Cash including cash equivalents; ST invest = short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.) G = AR turnarrow_forward
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