Walker Clothing Store has a balance in the Accounts Receivable account of $390k at the beginning of the year and a balance of $4
1 answer:
Answer: The average collection period of the receivables in terms of days was 73 days.
Explanation:
Given that,
Accounts Receivable at the beginning of the year = $390,000
Accounts Receivable at the end of the year = $410,000
Net credit sales during the year = $2,000,000
Average collection period of the receivables in terms of days:
Average accounts receivables =
= 4,00,000
Net credit sales = = 5
∴ Accounts receivable days =
= 73 days
The average collection period of the receivables in terms of days was 73 days.
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Answer:
The correct answer is option (A) $519,799.59.
Explanation:
According to the scenario, the given data are as follows:
Payment 1st year = $218,000
Payment 2nd year = $224,000
Payment 3rd year = $238,000
Rate of interest = 14.5%
So, We can calculate the amount Southern Tours willing to pay by using following formula:
We add the payment for 3 years by simple interest as:
= +
+
= +
+
= $519,799.59
Hence, the amount Southern Tours willing to pay is $519,799.59.