Exercise 7-20 Presented below is information for Flint Company. 1. Beginning-of-the-year Accounts Receivable balance was $20,400....

 

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Exercise 7-20 Presented below is information for Flint Company. 1. Beginning-of-the-year Accounts Receivable balance was $20,400. 2. Net sales (all on account) for the year were $103,100. Flint does not offer cash discounts. 3. Collections on accounts receivable during the year were $87,500. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically in manually.) No. Account Titles and Explanation 1. 2. 3. SHOW LIST OF ACCOUNTS LINK TO TEXT Accounts receivable turnover Days to collect accounts receivable Compute Flint's accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.) SHOW LIST OF ACCOUNTS LINK TO TEXT Debit This is a trend in liquidity. Credit times days Use the turnover ratio computed in (b) to analyze Flint's liquidity. The turnover ratio last year was 6.6. Exercise 7-20 Presented below is information for Flint Company. 1. Beginning-of-the-year Accounts Receivable balance was $20,400. 2. Net sales (all on account) for the year were $103,100. Flint does not offer cash discounts. 3. Collections on accounts receivable during the year were $87,500. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically in manually.) No. Account Titles and Explanation 1. 2. 3. SHOW LIST OF ACCOUNTS LINK TO TEXT Accounts receivable turnover Days to collect accounts receivable Compute Flint's accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.) SHOW LIST OF ACCOUNTS LINK TO TEXT Debit This is a trend in liquidity. Credit times days Use the turnover ratio computed in (b) to analyze Flint's liquidity. The turnover ratio last year was 6.6.

Answer rating: 100% (QA)

Journal entry No General Journal Debit Credit 1 No journal ... View the full answer