Question

Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,722,000 $6,667,000 Accounts receivable: Beginning of year $590,000 $540,000 End of year $580,000 $590,000 a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place. 20Y8: 20Y9: b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place. 20Y8: 20Y9:

          Accounts receivable turnover and days' sales in receivables
For two recent years, Robinhood Company reported the following:
20Y9
20Y8
Sales
$7,722,000
$6,667,000
Accounts receivable:
Beginning of year
$590,000
$540,000
End of year
$580,000
$590,000
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8:
20Y9:
b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8:
20Y9:

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Added by Alba W.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Madhur L

10/04/2023

Step 1

To calculate the accounts receivable turnover, we need to divide net sales by the average accounts receivable for each year. Show more…

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Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,722,000 $6,667,000 Accounts receivable: Beginning of year $590,000 $540,000 End of year $580,000 $590,000 a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place. 20Y8: 20Y9: b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place. 20Y8: 20Y9:

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Transcript

00:01 Hello students, here is a question.

00:02 Account receivable turnover and the day sales in recoverable for two recent years.

00:07 The reinhart company reported the following 2019 -18 sales and end of year sales is just given.

00:14 So, we are supposed to calculate the account receivable turnover for 2019 -18.

00:19 Also we need to determine the days of a sales receivable for 2019 and 2018.

00:24 Use 365 days to round the calculation of a decimal place.

00:28 So, this is our question, let us solve this.

00:33 So, our first question is to calculate the account receivable turnover.

00:40 Account receivable turnover.

00:44 So, we need to divide the sales by average account for each year.

00:47 First, let us find the average account receivable for each year.

00:51 So, that is 2018 and 2019.

00:54 So, the formula will be beginning year plus end year divided by 2.

01:00 So, that is beginning year will be 540 ,000 plus ending year is 90 ,000 divided by 2 will be 565 ,000.

01:14 And next for 2019, it is beginning year is 590 ,000 plus ending year is 580 ,000 divided by 2 which is 585 ,000.

01:27 Now let us calculate the account receivable turnover.

01:33 Account receivable turnover...

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