Question
Presented below is information for Nash Company. 1. Beginning-of-the-year Accounts Receivable balance was $22,500. 2. Net sales (all on account) for the year were $107,600.
Presented below is information for Nash Company.
1. | Beginning-of-the-year Accounts Receivable balance was $22,500. | |
2. | Net sales (all on account) for the year were $107,600. Nash does not offer cash discounts. | |
3. | Collections on accounts receivable during the year were $82,000. |
Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
1. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
2. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
3. | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Compute Nashs accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.)
Accounts receivable turnover | times | ||
Days to collect accounts receivable | days |
eTextbook and Media
List of Accounts
Use the turnover ratio computed in (b) to analyze Nash's liquidity. The turnover ratio last year was 5.5.
This is a select an option bad/good trend in liquidity. |
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