Bill's Produce does 60 percent of its business during June, July, and August. For Year Ended For
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Question:
Bill's Produce does 60 percent of its business during June, July, and August.
For Year Ended | For Year Ended | |
December 31, 2006 | July 31, 2006 | |
Net Sales | $700,000 | $690,000 |
Receivables, less allowance for doubtful accounts: | ||
Beginning of period | $ 45,000 | $ 80,000 |
(allowance, January 1, $2,000; August 1, $3,000) | ||
End of period | ||
(allowance, December 31, | $ 50,000 | $ 85,000 |
$3,000; July 31, | ||
$3,500) |
Required:
a. | Compute the days' sales in receivables for July 31, 2006, and December 31, 2006, based on the data above. |
b. | Compute the accounts receivable turnover for the period ended July 31, 2006, and December 31, 2006. |
c. | Comment on the results from (a) and (b). |
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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