Swift Media Sign Company sells on account. Recently, Swift reported these figures: Required 1. Compute Swift Media

Question:

Swift Media Sign Company sells on account. Recently, Swift reported these figures:
2014 2013 Net sales Receivables at year end $600,060 42,800 $570,000 38,200

Required
1. Compute Swift Media Sign Company's days' sales in average receivables for 2014.
2. Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.

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

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Volume 1

ISBN: 978-0132690096

9th Canadian edition

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

Question Posted: