<span>To calculate the average collection period: the average accounts receivable balance divided by average credit sales per day.
With $1,000,000 per year, that is $2739.73 per day.
The average accounts receivable is ($80,000 + $60,000) / 2 = $70,000
$70,000 / $2,739.73 = 25.6 days</span>
Answer:
B. No effect on net income; no effect on total assets
Explanation:
When you write off bad debt, the journal entry is:
Dr Allowance for doubtful accounts XYZ
Cr Accounts receivable XYZ
This actually had no effect on the income statement, since the allowance account is already a contra asset account.
When the write off is reversed because the customer paid the debt, the journal entry is:
Dr Accounts receivable XYZ
Cr Allowance for doubtful accounts XYZ
Dr Cash XYZ
Cr Accounts receivable XYZ
Again, since the company is using the allowance method, there is no real effect on the income statement nor total assets in the balance sheet.
There are five general types of cover letters:
<span>1. </span>Application Letter - to apply for a specific job opening
<span>2. </span>Referral Cover Letter - mentions the name of a person who has referred you to a job
<span>3. </span>Letter of Interest - <span> a prospecting letter, inquires about possible job openings </span>
<span>4. </span>Networking Letter-<span> request job search advice and assistance (sample networking letters)</span>
<span>5. </span>Value Proposition Letter - a brief statement explaining what makes the candidate unique
<span>If you are to request assistance and support from a job network, therefore, you must use the networking letter type of cover letter.</span>
Answer:
Low-priced inventory with high turnover
Explanation:
GOT IT RIGHT IN QUIZ
