Sales amount to P2,500,000. Sales terms are being revised from n/60 to n/45 and sales are expected to decrease by 10%. How much would be the increase (decrease) in average receivables as a result of this change ? P135417
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- A firm has total annual sales (all credit) of P1,200,000 and accounts receivable of P500,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P300,000? choose the letter of the correct answera. 51.3 daysb. 61.3 daysc. 71.3 daysd. 81.3 dayse. 91.3 daysChoose the correct letter and provide solution A firm has total annual sales (all credit) of P100,000.00 and accounts receivable of P20,000.00. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P15,000.00? *a. 22.8 daysb. 34.8 daysc. 44.8 daysd. 52.8 dayse. 54.8 daysChoose the letter of answer and provide solution A firm has total annual sales (all credit) of P25,000.00 and accounts receivable of P8,000.00. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P6,000.00? *a. 87.6 daysb. 97.6 daysc. 107.6 daysd. 102.5 dayse. 105.8 days
- The Omani trade company manager put a plan to increase the days' sales outstanding in (2021) by (17%) out of the year (2020). Suppose the other things are unchanged; how much will this plan add an amount to the accounts receivable? If you know, account receivable, and sales were (150, 2000) thousand RO in 2020, respectively.The Omani trade company manager put a plan to increase the days' sales outstanding in (2021) by (17%) out of the year (2020). Suppose the other things are unchanged; how much will this plan add an amount to the accounts receivable? If you know, account receivable, and sales were (150, 2000) thousand RO in 2020, respectively. (Note; Write all related Equations regarding the questions)If ABC Corporation has annual credit sales of Ᵽ990,000 and its average accounts receivable is Ᵽ100,000, how many is its average collection period? Assuming that receivable turnover rate increases by 25%, how much would then be the estimated change in accounts receivable.Solution:
- The net sale of a company is estimated to be SAR 384,000. How much will be the accounts receivable turnover ratio for the period if the average account receivables are SAR 32,000? O a. 12 O b. 11 O c. 15 O d. 610. Marca Leon is planning to change its credit policy. The proposed change is expected to shorten the collection period from 50 days to 30 days, increase the ratio of cash sales to total sales from 20% to 30%, and decrease total sales by 10%. 10 If projected sales for the coming year is P40,000,000, what is the difference on the average accounts receivable between the current and the proposed change in credit policy? Assume 360 days in a year. a. P2,344,444 b. P2,604,939 c. P4,938,272 d. cannot be determinedA Zack Firm is evaluating an Accounts Receivable Change that would increase Bad Debts from 2% to 4% of Sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the Variable Cost per unit is $15. As a result of the proposed change, sales are forecast to increase to 60,000 units. A. What are Bad Debts in Dollars currently? (Format: 11,111) B. What are Bad Debts in Dollars under the Proposed Change? (Format: 11,111) C. Calculate the Cost of the Marginal Bad Debts to the firm. (Format: 11,111)
- 1. As a result of the changes in collection procedures, average accounts receivable balance will increase or (decrease) by a. (900,000) b. 90,000 c. 900,000 d. 32,400,000 2. To make the changes in collection procedures cost beneficial, the minimum savings in collection costs for the coming year should be a. 8,100 b. 81,000 c. 90,000 d. 900,00020. Sales (all on credit), P600,000 Accounts receivable, P100,000 Allowance for uncollectible accounts, P3,000 Assume aging of accounts revealed that allowance of P10,000 is needed to take care of possible uncollectible accounts. Assume further that the allowance has a debit balance before adjustment. Uncollectible accounts expense is equal to:24. Noreen Company provided the following information for 2020: Accounts receivable – January 1 Credit sales Collection from customers, excluding the recovery of accounts written off Accounts written off 2,000,000 10,000,000 8,000,000 100,000 500,000 Sales returns Recovery of accounts written off 50,000 150,000 Estimated future sales returns on December 31 Estimated uncollectible accounts on 300,000 December 31 per aging What is the "amortized cost" of accounts receivable on December 31, 2020? 3,400,000 3,100,000 2,950,000 2,900,000