a. If the balance in accounts receivable at the end of 1991 was $500,000 and $750 million , how long did it take AR’s customers to pay? b. Suppose AR extends credit to customers on the basis of 2/10, net 30. How does the actual time it takes customers to pay compare with these credit terms if the accounts receivable balance is $500,000? if the accounts receivable balance is $750? c. Critique the use of the number of days credit to evaluate AR’s collections.

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A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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A: The calculation of average Accounts Receivables outstanding is shown hereunder : Annual credit sales…

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A: Days Sales or Receivables Outstanding means the number of days it takes a company to realize cash…

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A:

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A: In this we have to calculate the receivable turnover ratio using the formula.

Q: ection period. BECK does not offer discounts for early payment; thus, customers take the full 30…

A: Basic concept of cash discount and receivable collection period

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A: Answer: Option . No, because they are paying their suppliers too earlyExplanation.Days Purchase…

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A: Given, Accounts receivable turnover = 2 Annual credit sales = $719550

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Q: What is the receivales turnover and what is the average collection period (days sales outstanding) ?

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A: Note:  This question has five subparts. The first three have been answered below.

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A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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A: Receivables refers to the net amount of money borrowed by the customers of the company from it,…

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A: The Numerical has covered the concept of Accounting Ratio.  The Formula is used to calculate the…

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A: Accounts receivables are the short term assets to the company. When customer buys goods on credit…

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Q: In 2015, XYZ Corp. had an annual cost of goods sold of $365 million. XYZ's average accounts…

A: Answer: Option . No, because they are paying their suppliers too early. Explanation.Days Purchase…

Q: A company has annual sales of $5,210,000 and its average daily accounts receivable is $377,000. What…

A: given that, annual sales = $5210000 average daily accounts receivables = $377000 365 days per year…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Annual percentage rate is the effective rate of interest at which cash flows are converted into an…

Q: Prepare the above general journal entries:

A:

Q: ABC Corp. has net credit sales of P1,440,000 yearly with credit terms of n/30, which is also the…

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A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

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A: The average collection period is an accounting metric used to represent the average number of days…

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A:

Q: The Malibu Corporation has annual credit sales of $28 million. The average collection period is 30…

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