Calculate the accounts receivable turnover for Year 2 and Year 1.

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Answer 1

Question

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

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BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For the year, it reported net credit sales of P4,000,000 and collections from customers of P4,050,000. An analysis of the sales showed that a sale amounting to P40,000 was shipped to the buyer on Dec. 31 under FOB destination term while a sale amounting to P50,000 was shipped to the buyer on Jan. 1 under FOB shipping point term. Included in the collections was an over-payment by a customer in the amount of P13,000. Not included in the initial sales and collections amounts are the following:(A) Sales made to officers made under customary terms, P200,000 of which were collected – P700,000 and(B) Claims against common carrier – P 200,000. How much should ABC report as accounts receivables as of Dec. 31?

Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see image) Debit 5,040 Accounts Credit Cash.. Home Office Current Purchases from outsiders . Shipments from Home Office Accounts receivable P 21,000 25,000 56,216 15,360 7,500 684 Expenses.. Interest expense. Gain on sale of equipment. Sales.. 8,800 80,000 P109.800 P109.800 11. Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022.

During the current year, Khan’s Camera Shop had sales revenue of $220,000, of which $100,800 was on credit. At the start of the current year, Accounts Receivable showed a $22,400 debit balance and the Allowance for Doubtful Accounts showed a $1,210 credit balance. Collections of accounts receivable during the current year amounted to $84,000. The Company uses the percentage of receivables method to account for its estimated uncollectible accounts. Data during the current year follow: a. On December 31, an Accounts Receivable from a deadbeat customer (Melania Trump, Wedding Photographer) of $2,800 from a prior year was determined to be uncollectible; therefore it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated uncollectible accounts on 3 percent of the end balance of accounts receivable. What is the Company’s bad debt expense for the year?

Answer 2

Question

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Answer 6

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

Answer 7

Chapter 9, Problem 8CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

Answer 8

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Answer 9

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Answer 10

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

Answer 11

(3)

To determine

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

Answer 12

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Answer 13

(4)

To determine

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Calculate the accounts receivable turnover for Year 2 and Year 1.

Solution Summary: The author calculates the accounts receivable turnover ratio for Year 2 and Year 1.

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Calculate the accounts receivable turnover for Year 2 and Year 1.

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Conclude the Efficiency of Corporation C’s management in collecting accounts receivables.

Ascertain whether Corporation C’s accounts receivable turnover ratio would be higher or lower than a typical manufacturing company.

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