Question
Swift Media Sign Company sells on account. Recently, Swift reported these figures: 2014 2013 Net sales $600,060$570,000 Receivables at year end $42,800 $38,200 Collection period
Swift Media Sign Company sells on account. Recently, Swift reported these figures:
2014 2013
Net sales $600,060$570,000
Receivables at year end $42,800 $38,200
Collection period for receivables 1. 25 days
Required:
1.Compute Swift Media Sign Company's days' sales in average receivables for 2014.
One day's sale =__________________________________=____________ per day
Day's sales in average receivables =_____________________ =____________ days
2.Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.
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
Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
