The company reported the following information for the year: Beginning accounts receivable . . . . .

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The company reported the following information for the year:

Beginning accounts receivable . . . . . . . . . . . . . . . . . . . . . . . $2,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8,000

Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Ending accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,200

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600

Compute (1) inventory turnover and (2) number of days’ sales in inventory.


Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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