Question

Tiger Equipment Sales Co. had accounts receivable at the beginning and end of the year of $200,000 and $300,000, respectively. The net sales were $1,000,000. Determine the accounts receivable turnover and number of days’ sales in accounts receivable
Select one:
a. 3.3, 109
b. 3.3, 91
c. 4.0, 109
d. 4.0, 91.25

Answer 1

Answer:

Trinity Bikes Shop is a retail store that sells biking equipment and bikes. Due to declining cash sales, John, the CEO, decides to extend credit sales to all his customers. In the fiscal year ended December 31, 2017, there were $100,000 gross credit sales and returns of $10,000. Starting and ending accounts receivable for the year were $10,000 and $15,000, respectively. John wants to know how many times his company collects its average accounts receivable over the year.

Answer 2

c 4.0, 109

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