A small automotive parts shop uses a continuous review system to restock cases of oil. At the start of the day they have 175 qua
1 answer:
Answer:
Yes
Explanation:
A continuous review system means that inventory levels are always being checked. If that is the case, then the company should realize that after the customer bought the 35 quarts, that even after the scheduled 48 quarts arrive, they will still be under the reorder point (188 < 200) even if no additional sales occur:
Therefore, they should place another order, the answer is Yes.
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Answer:
Average Collection Period = 57.03
Explanation:
given data
Accounts Receivable beginning = $437,500
Accounts Receivable ending = $500,000
Net credit sales = $3,000,000
to find out
average collection period
solution
we get here first average account receivable that is express as
average account receivable =
average account receivable = $468750
and we consider No of Days in a year is = 365
so Average Collection Period will be
Average Collection Period = × 365
Average Collection Period = 57.03