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Lena [83]
4 years ago
15

Adair Corp. is concerned because the average time to collect its accounts receivable was 10 days longer than its normal credit t

erms of net 30. Adair reported the following in the Current Assets section of its comparative balance sheets:
12/31/17 12/31/16
Current Assets:
Accounts Receivable $123,300 $93,900
1. Assuming 360 days in a year, determine Adair's net credit sales for 2017?
Business
1 answer:
zaharov [31]4 years ago
3 0

Answer:

$1,109,700

Explanation:

The computation of the net credit sales is shown below:

Ending balance of account receivable = Net credit sales ÷ total number of days in a year × (credit days + average days)

$123,300 = Net credit sales ÷ 360 × (30 days + 10 days)

$123,300 = (Net credit sales ÷ 360 days) × 40 days

$123,300 × 360 days  ÷ 40 days = Net credit sales

So, the net credit sales would be

= $1,109,700

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Answer:

a. The cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost is $2,280.

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Explanation:

According to the given data, the standard direct-labor cost during each of these months was $38,000, therefore, in order to calculate  the cutoff value for investigation, we would have make the following calculation:

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3 years ago
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Answer: Maximize joint welfare in respective or the right owner.

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4 years ago
Coffman Company sold bonds with a face value of $1,000,000 for $940,000. The bonds have a coupon rate of 10 percent, mature in 1
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Answer:

Journal Entry

January 1

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Dr. Discount on Account Receivable  $60,000

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Explanation:

The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.

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