Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A recent annual report for FedEx contained the following data: Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: (dollars

image text in transcribedimage text in transcribedimage text in transcribed A recent annual report for FedEx contained the following data: Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: (dollars in thousands) Current Year $ 9,436,000 298,000 $ 9,138,000 $ 69,653,000 Previous Year $ 88,392,000 404,000 $ 87,988,000 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Receivables Turnover Ratio Numerator Denominator Numerator Denominator Average Days Sales in Receivables times days Indicate the accounts affected and enter decreases to account categories with a minus sign. a. At the end of the period, bad debt expense is estimated to be $17,100. b. During the period, bad debts are written off in the amount of $7,100. Event a. a. b. b. Assets = = = Liabilities + + + Stockholders' Equity Total gross sales for the period include the following: Credit card sales (discount 28). Sales on account (2/15, n/60) $9,800 $11,100 Sales returns related to sales on account were $350. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Net sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper

2nd canadian edition

133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071

More Books

Students also viewed these Accounting questions