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Genrish500 [490]
4 years ago
14

The Bear Rug has sales of $811,000. The cost of goods sold is equal to 63 percent of sales. The beginning accounts receivable ba

lance is $41,000 and the ending accounts receivable balance is $38,000. How long on average does it take the firm to collect its receivables?
(A) 17.26 days
(B) 17.78 days
(C) 18.58 days
(D) 20.44 days
(E) 29.77 days
Business
1 answer:
jarptica [38.1K]4 years ago
7 0

Answer:

B. 17.78 days

Explanation:

Days Sales Outstanding or Age of Receivables measures the average number of days it take for a company to collect its receivables.

This is computed by dividing the Average Accounts Receivables over Daily Sales. Bear Rug's Average Accounts Receivable is $39,500 ($41,000 + $38,000/2) while its Daily Sales is 2,222 ($811,000/365).

Thus, the average days for the firm to collect its receivables are 17.78 days ($39,500/2,222).

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Answer: $4,508

Explanation:

Companies usually give discounts with credit terms to encourage Receivables to pay faster.

In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.

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3 years ago
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3 years ago
At the beginning of the period, the Fabricating Department budgeted direct labor of $51,000 and equipment depreciation of $59,00
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Answer:

=  $120,500.00

Explanation:

<em>Flexible budget </em><em>is that which  is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.</em>

Kindly note that the $59,000 depreciation is a fixed cost which do not vary with the hours of production.

The flexible budget for the department will be

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Total flexible budget = $61,500.00 + $59,000

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A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
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