The average payment period is the length of time from the point when raw materials are purchased on account to the point when payment is made to the supplier of the goods.
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The ________ is the length of time from the point when raw materials are purchased on account to the point when payment is made to the supplier of the goods.
Select one:
a. cash conversion cycle
b. average collection period
c. average payment period
d. the average age of inventory
The average payment term is a metric used to represent the average number of days it takes a company to pay its suppliers the amount owed. Average Collection Time is a metric used to indicate the average number of days it takes a business to collect and cash accounts receivable.
Average Time To Pay (APP) is a metric that allows companies to see how long it takes on average to pay their suppliers. Businesses that track average payment terms have several advantages. However, the greatest benefit comes from the average payment period, which is the solvency ratio.
Learn more about average payment here
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Answer:
a. Debit to Notes Receivable
Explanation:
Journal entry for selling an asset in return for notes receivable is;
Notes Receivable A/c Dr.
To Asset A/C
In the given case, an aircraft is sold in exchange for a note receivable. The journal entry would be:
12% Notes Receivable A/C Dr. $380,000
To Aircraft $380,000
(Being notes receivable received in exchange for aircraft sold being recorded)
Notes Receivable is an asset for the receiver as it represents amount which is due to be received. Whenever an asset account is debited, it increases their balance.
Aircraft is an asset. When an asset is sold, it is credited. Here the asset being a movable asset.
The solution for this problem is get first the total sales, credit sales and receivables turnover.
187,000 / 0.086 = $2,174,418 this is your total sales
2,174,418 x 60% = $1,304,651 is your credit sales
1,304,651 / 126,370 = 10.32 times is the Receivables turnover
365 / 10.32 = 35.37 days is the day's sales in receivables
Answer:
The manufactured overhead was under-estimated.
Explanation:
Giving the following information:
The actual manufacturing overhead costs incurred were $515,000.
Estimated Manufacturing overhead was $500,000.
Overhead allocation is the distribution of indirect costs to produced goods. When the administration has undervalued and under-funded the amount of money needed for non-production costs, they have under-allocated overhead.
<u>Over applied manufacturing overhead:</u>
<u></u>
Applied overhead>Actual overhead
<u>Under applied manufacturing overhead:</u>
Applied overhead<Actual overhead
In this exercise:
Actual manufacturing overhead - Estimated Manufacturing overhead= 515000- 500000= 15000
The manufactured overhead was under-estimated.
