The writer is very fast, professional and responded to the review request fast also. Thank you.
The following data apply to items (a) and (b). Mr. Sparks, the owner of School Supplies, Inc., wants to
maintain control over accounts receivable. He understands that accounts receivable turnover will give a
good indication of how well receivables are being managed. School Supplies, Inc., does 70% of its business
during June, July, and August. The terms of sale are 2/10, net/60.
Net sales for the year ended December 31, 2007, and receivables balances follow:
Net sales $1,500,000
Receivables, less allowance for doubtful
accounts of $8,000 at January 1, 2007 72,000
Receivables, less allowance for doubtful
accounts of $10,000 at December 31, 2007 60,000
Required Answer the following multiple-choice questions:
a. The average accounts receivable turnover calculated from the previous data is
1. 20.0 times.
2. 25.0 times.
3. 22.7 times.
4. 18.75 times.
5. 20.8 times.
b. The average accounts receivable turnover computed for School Supplies, Inc., in item (a) is
1. Representative for the entire year.
2. Overstated.
3. Understated.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more