Is it better to use gross accounts receivable or net accounts receivable when calculating the average collection

Fantastic news! We've Found the answer you've been seeking!

Question:

Is it better to use gross accounts receivable or net accounts receivable when calculating the average collection period? Why or why not? Explain

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Posted Date: Mar 04, 2024 02:35 PM

See More Questions

Nikola, a salesperson at a cosmetic firm, gives a sales presentation to Jarvis. When she begins her sales presentation, Jarvis assumes that she is a good and effective salesperson because he...
To maintain product delivery times, Ready Energy production lines have increased work and handling of finished material and raw materials have taken a backseat. Initially, the delivery of finished...
In the Winter v. Gardens Regional Hosp. & Med. CTR, 2020 case who are the parties to the lawsuit and what is their dispute. What is the basic legal question regarding what specific provision of law...
14. The molecule that has formula C,H, with 2 sp C's, 2 sp C's, and 1 sp C and chiral isomer is H CH3 CH3 (a) (c) H H HC H C=C=C CH 3 C=C=C H CH3 (b) (d) HC=C H HCCC=C CH3 H CHCH3
Define the household in financial terms?
What is the major product when HBr is added to methylpropene?
Use the financial data for Randa Merchandising, Inc., in Exercise 13-13 to prepare its income statement for calendar-year 2017. (Ignore the earnings per share section.) Data From Exercise 13.13 In...
1. Create a table listing all tasks separately, with their duration. 2. Identify all dependent tasks, and indicate what predecessor tasks are required. 3. Construct a PERT/CPM chart similar to the...
When did 3D printing start in your selected industry? How was it first used in this industry?
Complete all three questions. Show as much work as possible. 1. Solve. sin0-sin0 = 0 2. Determine whether the function f(x)=x-1 is one-to-one. If it is, find it's inverse function. 3. Solve....
2. (10 pts) Let G = V1, V2, (V,E) be an undirected graph with |V| = n. The inductivity of a vertex ordering , Un is defined to be : max {v;i
Outdoor Gear is purchasing equipment costing $485,900 that will lower manufacturing costs by $132,000 a year. The equipment will be depreciated over 8 years using straight-line depreciation to a zero...
Uptown Motors is analyzing a project with annual sales of $420,000, straight-line depreciation of $28,700 a year, and a net working capital requirement of $34,000. The firm has a tax rate of 34...
. Draw a data flow graph for the binsearch() function given below. . Assuming that the input array V [] has at least one element in it, find an infeasible path in the data flow graph for the...
Hawkins Bikes, Inc. is a producer of road bikes. During July 20Y6, the company's first month of operations, the following events took place: Purchased $246,100 of materials. Used $211,600 of direct...
Complete research for one company which falls within the range of sole proprietorship, partnership, or corporation, and compile a five (5) page report (typed and double-spaced) reflecting the results...
The Thomas Corporation was organized on Jan. 1, 2020. On Dec. 31, 2021, the corporation lost most of its inventory in a warehouse fire before the year-end count of inventory was to take place. just...
A 30-year mortgage has an annual interest rate of 6.1 percent and a loan amount of $270,000. What is the remaining balance at the 180th payment?
A strangle is created by buying a put and buying a call on the same stock with a higher strike price and the same expiration. A put with a strike price of $100 sells for $6.75 and a call with a...
For an increase of 100 basis points in the yield to maturity, by what amount would the fixed-rate bonds price change? a. $7.49 b. $5.73 c. $4.63 Frank Myers, CFA, is a fixed-income portfolio manager...
Let $X_{1}, \ldots, X_{n}$ be a set of independent and identically distributed random variables from a distribution $F$ with variance $\mu_{2}$ where \(E\left(\left|X_{1}ight|^{4}ight) a. Prove...
Consider a sequence of independent random variables $\left\{X_{n}ight\}_{n=1}^{\infty}$ where $X_{n}$ has probability distribution function \[f_{n}(x)= \begin{cases}2^{-(n+1)} &...
Let $X_{1}, \ldots, X_{n}$ be a set of independent and identically distributed random variables from a shifted exponential density of the form \[f(x)= \begin{cases}\exp [-(x-\theta)] & \text { for...

Is it better to use gross accounts receivable or net accounts receivable when calculating the average collection

Question:

Expert Answer:

When calculating the average collection period it is generally better to use net accounts receivable ... View the full answer

Fundamentals of Investments, Valuation and Management

Students also viewed these accounting questions