Not fewer than 20 days nor more than 30 days.
The answer & explanation for this question is given in the attachment below.
Answer:
S/n Account Title and Explanation Debit Credit
a. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
b. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
Ok so trade offers is like here an example: if you want that car really bad but the other person says if you this car you have to give him something that he likes or the same value as the car.
Answer:
Sheffield Company
Inventory Turnover Ratio = Cost of goods sold/Average Inventory
= $1,145,400/$138,000
= 8.3 times
Explanation:
a) Data and Calculations:
Beginning inventory = $145,000
Ending inventory = $131,000
Average inventory = (Beginning inventory + Ending inventory)/2
= ($145,000 + 131,000)/2
= $138,000
Sales revenue = $1,972,800
Cost of goods sold = $1,145,400
Net income = $248,400
b) The inventory turnover ratio for Sheffield Company is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period. This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year. When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.
