Presented below is information for Kingbird, Inc. for 2017: 1. Beginning-of-the-year Accounts Receivable balance was $141,000....

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Presented below is information for Kingbird, Inc. for 2017: 1. Beginning-of-the-year Accounts Receivable balance was $141,000. Net sales for the year were $1,525,000. $170,000 of the sales were cash sales. Kingbird does not offer cash discounts for early payment. 2. 3. Collections on accounts receivable during the year were $1,297,000. Kingbird plans to factor accounts receivable totaling $70,000 at the end of the year. Kingbird will transfer the accounts to Herzog Factors, Inc. with recourse. Herzog Factors will retain 5% of the balances for probable adjustments and assesses a finance charge of 7%. The fair value of the recourse obligation is $2,400. Cash 61600 Loss on Sale of Receivables 7300 Due from Factor 3500 Recourse Liability 2400 Accounts Receivable 70000 Compute Kingbird's accounts receivable turnover for the year under two scenarios. In the first scenario, assume the receivables are sold as described above. In the second scenario, assume Kingbird does not factor the receivables. (Round answers to 2 decimal places, e.g. 52.70.) Assuming Factoring Assuming No Factoring Accounts receivable turnover times times Presented below is information for Kingbird, Inc. for 2017: 1. Beginning-of-the-year Accounts Receivable balance was $141,000. Net sales for the year were $1,525,000. $170,000 of the sales were cash sales. Kingbird does not offer cash discounts for early payment. 2. 3. Collections on accounts receivable during the year were $1,297,000. Kingbird plans to factor accounts receivable totaling $70,000 at the end of the year. Kingbird will transfer the accounts to Herzog Factors, Inc. with recourse. Herzog Factors will retain 5% of the balances for probable adjustments and assesses a finance charge of 7%. The fair value of the recourse obligation is $2,400. Cash 61600 Loss on Sale of Receivables 7300 Due from Factor 3500 Recourse Liability 2400 Accounts Receivable 70000 Compute Kingbird's accounts receivable turnover for the year under two scenarios. In the first scenario, assume the receivables are sold as described above. In the second scenario, assume Kingbird does not factor the receivables. (Round answers to 2 decimal places, e.g. 52.70.) Assuming Factoring Assuming No Factoring Accounts receivable turnover times times

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Answers Solution Cash61600Loss on sale of receivable 70000724007300Due from factoring 7000053500Reco... View the full answer