Fleming Company offers its customers n/30 credit terms. The turnover ratio for the prior year was 4.5.

Question:

Fleming Company offers its customers n/30 credit terms. The turnover ratio for the prior year was 4.5. The following account balances were obtained from the records of Fleming Company for the current year:

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Instructions:

1. Calculate the accounts receivable turnover ratio for the current year.

2. Calculate the average number of days for payment.

3. Is Fleming Company effective in collecting its accounts receivable?

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Accounting Advanced

ISBN: 9780538447553

9th Edition

Authors: Claudia Bienias Gilbertson

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Question Posted: May 17, 2024 10:00 AM

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Fleming Company offers its customers n/30 credit terms. The turnover ratio for the prior year was 4.5.

Question:

Account Accounts Receivable Allowance for Doubtful Accounts Net Sales January 1 $584,348.48 December 31 $ 604,285.25 $ 20,153.35 $ 23,485.62 $3,848,348.27

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Accounting Advanced

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