Accounts receivable turnover and number of days' sales in receivables Financial .statement data fur years ending December 31 for Chiro-Solulions Company follows: 2016 2015 Sales $2,912,000 $2,958,000 Accounts receivable: Beginning of year 300.000 280,000 End of year 340,000 300,000 a. Determine the accounts receivable turnover for 2016 and 2015 b. Determine the number of days' sales in receivables for 2016 and 2015. Use 365 days and round to one decimal place. c. Does the change in accounts receivable turnover and the number of days’ sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend?

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Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter 8, Problem 8.6APE
Textbook Problem

Accounts receivable turnover and number of days' sales in receivables

Financial .statement data fur years ending December 31 for Chiro-Solulions Company follows:

  2016 2015
Sales $2,912,000 $2,958,000
Accounts receivable:    
Beginning of year 300.000 280,000
End of year 340,000 300,000
  1. a. Determine the accounts receivable turnover for 2016 and 2015
  2. b. Determine the number of days' sales in receivables for 2016 and 2015. Use 365 days and round to one decimal place.
  3. c. Does the change in accounts receivable turnover and the number of days’ sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend?

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Chapter 8 Solutions

Financial & Managerial Accounting
Ch. 8 - Direct write-off method Journalize the following...Ch. 8 - Direct write-off method Journalize the following...Ch. 8 - Allowance method Journalize the following...Ch. 8 - Allowance method Journalize the following...Ch. 8 - Percent of sales method At the end of the current...Ch. 8 - Percent of sales method At the end of the current...Ch. 8 - Analysis of receivables method At the end of the...Ch. 8 - Analysis of receivables method At the end of the...Ch. 8 - Note receivable Guzman Company received a 60-day,...Ch. 8 - Note receivable Prefix Supply Company received a...Ch. 8 - Accounts receivable turnover and number of days'...Ch. 8 - Accounts receivable turnover and number of days...Ch. 8 - Classifications of receivables Boeing is one of...Ch. 8 - Nature of uncollectible accounts MGM Resorts...Ch. 8 - Entries for uncollectible accounts, using direct...Ch. 8 - Entries for uncollectible receivables, using...Ch. 8 - Entries to write off accounts receivable Creative...Ch. 8 - Providing for doubtful accounts At the end of the...Ch. 8 - Number of days past due Toot Auto Supply...Ch. 8 - Aging of receivables schedule The accounts...Ch. 8 - Estimating allowance for doubtful accounts Waddell...Ch. 8 - Adjustment for uncollectible accounts Using data...Ch. 8 - Estimating doubtful accounts Selby's Bike Co. is a...Ch. 8 - Entry for uncollectible accounts Using the data in...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Effect of doubtful accounts on net income During...Ch. 8 - Effect of doubtful accounts on net income Using...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Determine due date and interest on notes Determine...Ch. 8 - Entries for notes receivable Master Designs...Ch. 8 - Entries for notes receivable The series of seven...Ch. 8 - Entries for notes receivable, including year-end...Ch. 8 - Entries for receipt and dishonor of note...Ch. 8 - Entries for receipt and dishonor of notes...Ch. 8 - Receivables on the balance sheet List any errors...Ch. 8 - Accounts receivable turnover and days' sales in...Ch. 8 - Accounts receivable turnover and days sales in...Ch. 8 - Accounts receivable turnover and days' sales in...Ch. 8 - Accounts receivable turnover Use the data in...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Ethics and professional conduct in, business Bev...Ch. 8 - Estimate uncollectible accounts For several years,...Ch. 8 - Accounts receivable turnover and days sales in...Ch. 8 - Accounts receivable turnover and days' sales in...Ch. 8 - Accounts receivable turnover and days' sales in...

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