FINANCIAL ACCOUNTING>IC<
15th Edition
ISBN: 9781119344988
Author: Kimmel
Publisher: WILEY C
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Chapter 8, Problem 8.9AP
To determine
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 and comment: On the accounts receivable turnover, and average collection period of both Company N and Company A for the year 2017.
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Avon Products, Inc., located in New York City, is one of the world’s largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands):
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$
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A disclosure note accompanying the financial statements reported the following ($ in thousands):
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2015
(In thousands)
Calculation of account receivables, net:
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$
590,000
$
526,700
Less: allowance for doubtful accounts
(122,900
)
(77,600
)
Less: reserve for product returns
(8,200
)
(9,100
)
Trade accounts receivable, net:
$
458,900
$
440,000
Assume that the company reported bad debt expense in 2016 of $191,000 and had products returned for credit totaling $187,000 (sales price). Net sales for 2016 were…
Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands):
2016
2015
Current assets:
Receivables, less allowances of $132,960 in2016 and $88,560 in 2015
$
461,300
$
441,200
A disclosure note accompanying the financial statements reported the following ($ in thousands)
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2016
2015
(In thousands)
Calculation of account receivables, net:
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$
594,260
$
529,760
Less: allowance for doubtful accounts
(123,080
)
(77,780
)
Less: reserve for product returns
(9,880
)
(10,780
)
Trade accounts receivable, net:
$
461,300
$
441,200
Assume that the company reported bad debt expense in 2016 of $192,200 and had products returned for credit totaling $187,180 (sales price). Net sales for…
Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands):
2016
2015
Current assets:
Receivables, less allowances of $131,720 in 2016 and $87,320 in 2015
$ 459,700
$ 440,400
A disclosure note accompanying the financial statements reported the following ($ in thousands)
Year Ended
2016 (In thousands)
2015 (In thousands)
Calculation of account receivables, net:
Receivables
$ 591,420
$ 527,720
Less: allowance for doubtful accounts
(122,960)
(77,660)
Less: reserve for product returns
(8,760)
(9,660)
Trade accounts receivable, net:
$ 459,700
$ 440,400
Assume that the company reported bad debt expense in 2016 of $191,400 and had products returned for credit totaling $187,060 (sales price). Net sales for 2016 were $5,598,800 ($ in thousands).
Required:
What is the amount of…
Chapter 8 Solutions
FINANCIAL ACCOUNTING>IC<
Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - Prob. 12QCh. 8 - How may the maturity date of a promissory note be...Ch. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - General Motors Company has accounts receivable and...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - Prob. 21QCh. 8 - Prob. 22QCh. 8 - Prob. 23QCh. 8 - Prob. 24QCh. 8 - Presented below are three receivables...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Prob. 8.4BECh. 8 - Byrd Co. uses the percentage-of-receivables basis...Ch. 8 - Prob. 8.6BECh. 8 - Compute interest and find the maturity date for...Ch. 8 - Prob. 8.8BECh. 8 - Prob. 8.9BECh. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.1DIECh. 8 - Prob. 8.2ADIECh. 8 - Prob. 8.2BDIECh. 8 - Prob. 8.3DIECh. 8 - Prob. 8.4DIECh. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.1APCh. 8 - Prob. 8.2APCh. 8 - Prob. 8.3APCh. 8 - Prob. 8.4APCh. 8 - Prob. 8.5APCh. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Prob. 8.8APCh. 8 - Prob. 8.9APCh. 8 - Prob. 8.1CACRCh. 8 - Prob. 8.1EYCTCh. 8 - Prob. 8.2EYCTCh. 8 - Prob. 8.3EYCTCh. 8 - Prob. 8.4EYCTCh. 8 - Prob. 8.7EYCTCh. 8 - Prob. 8.8EYCTCh. 8 - Prob. 8.9EYCTCh. 8 - Prob. 8.1IFRS
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