KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average daily sales are P3,000, and it collects accounts in 25 days. What is its net credit position? (Note that a negative position implies receivables exceed payables.) A. P1,000 C. P15,000 B. (P1,000) D. (P15,000)

Q: The company sells on terms 2/10, net 30.  Total sales for the year are P1,000,000, of which P100,000…

A: The average amount of account receivable is based on the customer who is paying early for grabbing…

Q: The following data pertains to ABC Corp: Credit sales for the period, P3,000 Credit balance of the…

A: Estimated uncollectible = P1 000,000 x 3% = P30,000 Bad debt expense = P30,000 - P8,000 = P22,000

Q: ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the…

A: Receivables turnover = Credit sales / Accounts receivable Average collection period = 365/…

Q: If Cactus, Inc. has annual sales of $83,000, average accounts payable of $30,000, and average…

A: Given: Annual sales = $83,000 Average accounts receivables = $25,000

Q: Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays…

A: Accounts receivables refer to the legal claims or money a company will get after the customer pays…

Q: Pepsi Inc has the following information for the year 2015. Accounts Receivables, beginning of the…

A: Accounts Receivable, year ending = Accounts Receivable, year ending, before any write-off - Amount…

Q: 19.Timothy Corp. had accounts receivable of P 150,000 and allowance for doubtful accounts of P…

A: Given, Accounts receivable = P 150,000, Allowance for doubtful accounts = P 12,000 at the beginning…

Q: E The following information relates to Jaya Bhd's accounts RM 30,000 Beginning balance Allowance for…

A: Allowance for bad debts is a provision made at an amount of expected bad debts that may occur as a…

Q: d be employed. Only one proposal has so far been put forward concerning the management of trade…

A: 1. Credit policies are critical documents for nearly every organization, but especially for those…

Q: 4. KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its…

A: Company’s cash conversion cycles tells one how effectively management is in converting its cash from…

Q: A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: On March 1, 20X1 ABC Co. assigned its P1,000,000 accounts receivable to B Bank in exchange for a…

A: Factoring: Factoring is a type of business loan in which the business organization sells its…

Q: D. P1,800,000 The QYU, Inc. has sales of P5 million per year (all credit) and an average collection…

A: The average receivable turnover ratio is calculated as net sales divided by average account…

Q: A firm has $375,000 in credit sales and $135,000 in accounts receivable. Compute the average number…

A: Average number of collection days = 365 days / Average receivable turnover ratio Average receivable…

Q: Al Sharif Company's Average Accounts Receivables is OMR 360,000 and total Sales is OMR 1,200,000.…

A: Credit sale=Total sale×100-Cash sale %=OMR 1,200,000×100-40%=OMR 720,000

Q: Leonard had credit sales of $1,200,000, a balance in accounts receivable of $250,000 and an…

A: Bad debt expenses are the expenses written off to account for the uncollectible debtors. Allowance…

Q: Golden Corporation have the following information from its books: Sales P1,600,000 Credit sales 90%…

A: Sales = P1,600,000 Credit sales are 90% of sales Average Collection period is 30 days Assume number…

Q: XYZ Company's Average Accounts payable is OMR 240,000 and total Purchases is OMR 700,000. The Cash…

A: The average payment days are the number of days taken by the company to pay off its creditors.

Q: The change in the credit policy would result to increase (decrease) in incremental profit of (Use…

A: The increase in incremental profit is when the total benefit derived from credit policy is higher…

Q: A firm starts with $5,000 of accounts receivables and ends the period with $4,000 of receivables. If…

A: Sales revenue: It can be defined as the amount received by an individual or entity against the sale…

Q: Batik Clothing Store had a balance in the Accounts Receivable account of P390,000 at the beginning…

A: The average collection period is calculated by dividing the average balance of accounts receivable…

Q: A firm has total annual sales (all credit) of P1,200,000 and accounts receivable of P500,000. How…

A: Accounts receivable days = (Accounts receivables / Credit sales) x 365

Q: Aubrey Company that you work for had credit sales of P3,500,000 last year and on average had P33,000…

A: Average collection period refers to the average number of days taken by the clients or customers to…

Q: Dome Metals has credit sales of $342,000 yearly with credit terms of net 45 days, which is also the…

A: The conceptual formula used:

Q: The Jeremy Flores Club has annual revenue of EUR 7 million and all sales are on account. Good credit…

A: 1. Max account receivables = ACP×sales365 =30×7 million365=EUR 575,342

Q: Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current…

A: The net realizable value for accounts receivable is calculated as gross account receivables minus…

Q: On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with…

A: 3. If Nicanor do not pays within discount period then discount will not given to Nicanor Discount=…

Q: The annual sales of a company are $47,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: Annual sales of the company: $47,000 Half of the sales are on…

Q: Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry hasannual credit sales of $500,000…

A:

Q: XYZ Company's Average Accounts payable is OMR 240,000 and total Purchases is OMR 700,000. The Cash…

A: Credit purchase = total purchase x (1 - cash purchase) = 700000 x (1-0.30) = OMR 490,000

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Annual percentage rate is the effective rate of interest at which cash flows are converted into an…

Q: Crane Corp.currently has accounts receivable of $1,093,000 on net sales of $7,334,000. What are its…

A: The computation of accounts receivable turnover ratio: Hence, the accounts receivables turnover…

Q: 4. KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Based on the information:  Credit sales - P 172,000 credit Collections on accounts receivable…

A: Formula: Bad debts expense = Ending Accounts receivable x Bad debts percentage

Q: McGriff Dog Food Company normally takes 28 days to pay for average daily credit purchases of $9,540.…

A: The firms usually operate on a credit basis, which means that they pay for their purchases later,…

Q: ABC Corp. has net credit sales of P1,440,000 yearly with credit terms of n/30, which is also the…

A: Formula: Accounts receivable turnover = Net credit sales / Average accounts receivable Average…

Q: Medwig Corporation has a DSO of 17 days. The company averages $3,500 in sales each day (all…

A: Average accounts receivable can be calculated by following formula:- Days sales outstanding (DSO) *…

Q: If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and…

A: Average Collection Period helps to know the trend of collection of dues. The formula of Average…

Q: Terry's hardware normally takes 27 days to pay for average daily credit purchases of $9,530.  Its…

A: Part (a)Accounts receivable = Average daily credit sales x Average collection period = $ 10,680  x…

Q: KL Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending…

A: Solution: Net Credit Sales = 80% of $1,000,000                             = 800,000 For calculating…

Q: Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31…

A: The addition to allowance for doubtfut debts account is calculated as under: = % of expected…

Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…

A: The average collection period is an accounting metric used to represent the average number of days…

Q: A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts…

A: Lets start with understanding of bad debt and allowance for doubtful accounts, Bad debt means a debt…

Q: McGriff Dog Food Company normally takes 30 days to pay for average daily credit purchases of $9,730.…

A: Credit is the capacity to borrow money or get goods or services with the expectation of repaying it…

Q: The Malibu Corporation has annual credit sales of $28 million. The average collection period is 30…

A: Day sales in receivables= 365/receivables turnover 30 =365/ receivables turnover receivables…

Q: . Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day.…

A: Given: (Days sales outstanding) DSO = 19 days Credit sales = 5,500 Assuming 365 days in a year.

Q: net credit sales will be uncollectible

A: Allowance for doubtful accounts shows the amount of receivables that are are not considered as…