Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 10QC
If uncollectible accounts are determined by the aging-of-receivables to be $1,260, the collectible-account expense for 2018 would be
- a. $2,160.
- b. $1,260.
- c. $360.
- d. $900.
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Road Runner Express reported the following rounded amounts (in millions):
2018
$ 5,040
(260)
2019
$ 5,335
(255)
$ 5,080
$ 4,780
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Net Sales (assume all on credit)
Required:
$ 48,500 $ 46,700
1. Determine the receivables turnover ratio and days to collect for 2019.
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to
2018, when the turnover was 10.8?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate
calculations. Round your final answers to 1 decimal place.)
Receivables Turnover Ratio
Days to Collect
6.5 times
56.2 days
Carter & Evans reported the following rounded amounts (in millions):
2019
$ 5,435
(305)
$ 5,130
$ 40,500
2018
$ 5,140
(310)
$ 4,830
$ 39,000
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Net Sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and days to collect for 2019.
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables
turnover, compared to 2018, when the turnover was 9.5?
Chapter 5 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 5 - A doctor for the Benson Family Practice performs a...Ch. 5 - On March 15, Maxwell Plush sold and shipped...Ch. 5 - Prob. 3QCCh. 5 - What is the financial impact on a company when a...Ch. 5 - Prob. 5QCCh. 5 - Which of the following statements is true? a....Ch. 5 - Duncan Corporation began 2018 with a balance in...Ch. 5 - Use the following information to answer questions...Ch. 5 - Jackson Company had the following information in...Ch. 5 - If uncollectible accounts are determined by the...
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