Question
During the current accounting period, revenue from credit sales is $861,000. The accounts receivable balance is $53,380 at the beginning of the period and $71,200
During the current accounting period, revenue from credit sales is $861,000. The accounts receivable balance is $53,380 at the beginning of the period and $71,200 at the end of the period. Which of the following statements is correct?
On average, it takes 13.8 days to collect payment from credit customers.
The receivables turnover ratio is 13.8.
On average, the company sells its inventory every 26.51 days.
The receivables turnover ratio is 26.5.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
