Computing the collection period for receivables Unique Media Sign Incorporated sells on the account. Recently, Unique reported the following figures; 2018 2017 Net credit sales $594,920 $602,000 Net receivable at the end of the year $38,500 $47,100 Requirements Compute Unique’s days’ sales in receivables for 2018. (Round to the nearest day) Suppose Unique’s normal credit terms for a sale on account are 2/10, net 30. How well docs Unique’s collection period compared to the company’s credit terms? Is this good or bad for Unique?
Computing the collection period for receivables Unique Media Sign Incorporated sells on the account. Recently, Unique reported the following figures; 2018 2017 Net credit sales $594,920 $602,000 Net receivable at the end of the year $38,500 $47,100 Requirements Compute Unique’s days’ sales in receivables for 2018. (Round to the nearest day) Suppose Unique’s normal credit terms for a sale on account are 2/10, net 30. How well docs Unique’s collection period compared to the company’s credit terms? Is this good or bad for Unique?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...
Related questions
Question
Computing the collection period for receivables
Unique Media Sign Incorporated sells on the account. Recently, Unique reported the following figures;
2018 2017
Net credit sales $594,920 $602,000
Net receivable at the end of the year $38,500 $47,100
Requirements
- Compute Unique’s days’ sales in receivables for 2018. (Round to the nearest day)
- Suppose Unique’s normal credit terms for a sale on account are 2/10, net 30. How well docs Unique’s collection period compared to the company’s credit terms? Is this good or bad for Unique?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
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.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT