a. P. Gibson Company has computed its accounts receivable turnover in days to be 36. Required Compute

Question:

a. P. Gibson Company has computed its turnover in days to be 36.

Required
Compute the turnover per year.

b. P. Gibson Company has computed its turnover per year to be 12.

Required
Compute the turnover in days.

c. P. Gibson Company has gross receivables at the end of the year of $280,000 and net sales for the year of $2,158,000.

Required
Compute the days’ sales in receivables at the end of the year.

d. P. Gibson Company has net sales of $3,500,000 and average gross receivables of $324,000.

Required
Compute the turnover.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...