Accounts receivable turnover Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average. To calculate: The accounts receivable turnover for Year 2 and Year 1.

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Answer 1

Question

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

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Essence of Skunk Fragrances, Limited, sells 4,000 units of its perfume collection each i year at a price per unit of $500. All sales are on credit with terms of 2/10, net 30. The discount is taken by 70 percent of the customers. What is the amount of the company's accounts receivable? Multiple Choice $54,794.52 $83,287.67 $49,315.07 $87671.23 $92.054.79

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Answer 2

Question

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Answer 6

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

Answer 7

Chapter 8, Problem 8.27EX

(1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables has been collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

Answer 8

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

Answer 9

(2)

To determine

To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

Answer 10

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Answer 11

(3)

To determine

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates accounts receivable turnover by dividing net credit sales by the average amount of net accounts.

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To calculate: The day’s sales in receivables at the end of Year 2 and Year 1.

To conclude: The Efficiency of Company H’s management in collecting accounts receivables.

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