Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 8QS
Summary Introduction
Introduction: Day’s sale uncollected is defined as the financial measure concerning to the compatibility of the company that represent how long it will take to collect
To determine: The day’s sales uncollected is to be computed for both the year 1 and year 2.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A company reports the following:
Sales
Average accounts receivable (net)
Determine (a) the accounts receivable turnover and (b) number of days' sales in receivables. Round your answers to one decimal place. Assume a 365-
day year.
a. Accounts receivable turnover
$398,580
76,650
b. Number of days' sales in receivables
days
The following annual account balances are from Armour Sports at December 31. a. What is the change in the number of days’ sales uncollected between Year 1 and Year 2? (Round the number of days to one decimal.) b. From the analysis in part a, is the company’s collection of receivables improving?
How to calculate the total outstanding receivables??
For example if at the Dec 31 2013, total sales on account and invoiced during the year, the account receivable balance outstanding at the year end, the date when the invoice was issued and the date when the invoice was paid off was given!
Chapter 6 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 6 - List the seven braod principles of internal...Ch. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Refer to Google’s financial statements in Appendix...Ch. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Prob. 5PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 5PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1GLPCh. 6 - Prob. 1FSACh. 6 - Prob. 2FSACh. 6 - Prob. 3FSACh. 6 - Prob. 1BTNCh. 6 - Assume you are a business consultant. The owner of...Ch. 6 - Prob. 4BTNCh. 6 - Review the opening feature of this chapter that...Ch. 6 - Prob. 6BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Based on the following data for the current year, what is the number of days' sales in receivable? Net sales on account during year $498,171 Cost of goods sold during year 163,215 Accounts receivable, beginning of year 42,207 Accounts receivable, end of year 51,640 Inventory, beginning of year 92,904 Inventory, end of year 119,969 Round your answer up to the nearest whole day. Select the correct answer. 88 days 78 days 120 days 34 daysarrow_forwardBarga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $61,000; and Year 2, $98,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place. Year 1: Year 2: Choose Numerator: Accounts receivable $ $ Days' Sales Uncollected 1 Choose Denominator: X /Net sales X 61,000 x 98,000 x 663,000/ $ 749,000/ $arrow_forwardBarga Company's net sales for Year 1 and Year 2 are $666,000 and $747,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $62,000; and Year 2, $95,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers In the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. (Do not round intermediate calculations. Round your "Da Sales Uncollected" answers to 1 decimal place.) Days' Sales Uncollected Choose Denominator: Days Days' Sales Uncollected %3D Choose Numerator: Days' sales uncollected !! days Year 1: days Year 2: Required B >arrow_forward
- Based on the following data for the current year, what is the number of days' sales in receivables? Assume 365-Day year. Sales on account during year $425,334 Cost of goods sold during year 211,989 Accounts receivable, beginning of year 43,627 Accounts receivable, end of year 51,814 Inventory, beginning of year 83,323 Inventory, end of year 108,050 Round your answer up to the nearest whole day. a. 182 b. 93 Ос. 82 d. 41arrow_forwardIf you are told that LSJ Company turns its accounts receivable over every 33 days…this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis c. Ratio Analysisarrow_forwardUse the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Receivable Year Net Credit Sales 2017 $690,430 $335,250 2018 705,290 364,450 2019 770,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. a. The company's lending policies may be too strict. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending C. balances. d. All of the above statements may be correct. a b darrow_forward
- If I were to have accounts receivable in the millions and were $ 74 million at the beginning of year one. How do I compute the accounts receivable turnover for year2 and 1 and what does it mean by rounding to two decimal places? What part do I round off?arrow_forwardThe following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁arrow_forwardBarga Company's net sales for Year 1 and Year 2 are $668,000 and $748,000, respectively its year-end balances of accounts receivable follow. Year 1, $60,000; and Year 2, $96,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?arrow_forward
- A professional service firm at the end of the current fiscal year had a Total Revenue of $8,500,000 and accounts receivable of $2,000,000. If its accounts receivable at the end of the previous year was $2,200,000, what is this business' Receivable Turnover (RT) and Days' Collections (DC)? Write out your matharrow_forwardBarga Company's net sales for Year 1 and Year 2 are $669,000 and $750,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $56,000; and Year 2, $91,000.a. Complete the below table to calculate the days' sales uncollected at the end of each year.b. Did days’ sales uncollected improve or worsen in Year 2 versus Year 1?arrow_forwardJinx Company provided the following information for the current year in relation to accounts receivables: Accounts receivable, January 1 1,300,000 5,500,000 150,000 100,000 5,000,000 50,000 250,000 Credit sales Sales return Accounts written off Collections from customers Estimated future sales return on December 31 Estimated collectible accounts per aging at year-end What amount should be reported as net realizable value of accounts on December 31?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License