FINANCIAL&MANAGERIAL ACCT.-CONNECT ONLY
FINANCIAL&MANAGERIAL ACCT.-CONNECT ONLY
9th Edition
ISBN: 9781266790539
Author: Wild
Publisher: MCG
Question
Book Icon
Chapter 6, Problem 15QS

a.

To determine

Concept Introduction

Average Collection Period: The average collection period refers to the time period taken by the business organization to obtain accounts receivable payments due from its clients. In order to maintain liquidity, a corporation must promptly receive payment for the goods or services it has provided.

The change in the number of days sales uncollected.

b.

To determine

Concept Introduction

Average Collection Period: The average collection period refers to the time period taken by the business organization to obtain accounts receivable payments due from its clients. In order to maintain liquidity, a corporation must promptly receive payment for the goods or services it has provided.

To state: The performance of the company in the collection of receivables.

Blurred answer
Students have asked these similar questions
Jinx 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?
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?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:9781285595047
Author:Weil
Publisher:Cengage