Accounts receivable Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. 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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

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Answer 1

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

(c)

To determine

To calculate: The average collection period of Company K, in days.

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Answer 2

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

(c)

To determine

To calculate: The average collection period of Company K, in days.

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Answer 3

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

(c)

To determine

To calculate: The average collection period of Company K, in days.

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Answer 4

Question

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

(c)

To determine

To calculate: The average collection period of Company K, in days.

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Answer 5

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

(c)

To determine

To calculate: The average collection period of Company K, in days.

Answer 6

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

Answer 7

Chapter 8, Problem 8.14E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

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 other words, it indicates the number of times the average amount of net accounts receivables 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 ending balance of accounts receivable of Company K.

Answer 8

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

Answer 9

(b)

To determine

To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

Answer 10

(c)

To determine

To calculate: The average collection period of Company K, in days.

Answer 11

(c)

To determine

To calculate: The average collection period of Company K, in days.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - 6. Distinguish between the two bases that may be...Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

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To calculate: The accounts receivable turnover ratio of Company K for the year 2015.

To calculate: The average collection period of Company K, in days.

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