Question

'Zips Corp reports the following: Net Credit Sales 100,000 A/R Jan 1 10,000 ADA Jan 1 1,000 A/R Dec 31 15,000 ADA Dec 31 2,000 The Accounts Receivables Turnover Ratio is 10 9.09 100'

Name: zips corp reports the following net credit sales 100000 ar jan 1 10000 ada jan 1 1000 ar dec 31 15000 ada dec 31 2000 the accounts receivables turnover ratio is 10 909 100 71817
Uploaded: 2022-03-19T06:40:43-08:00
Duration: 2 min 23 s
Channel: Aya Bianca Into
Description: zips corp reports the following net credit sales 100000 ar jan 1 10000 ada jan 1 1000 ar dec 31 15000 ada dec 31 2000 the accounts receivables turnover ratio is 10 909 100 71817

          'Zips Corp reports the following: Net Credit Sales 100,000 A/R Jan 1 10,000
ADA Jan 1 1,000
A/R Dec 31 15,000
ADA Dec 31 2,000 The Accounts Receivables Turnover Ratio is
10
9.09
100'

Added by Steven A.

Horngren’s Cost Accounting

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

Instant Answer

Solved by Expert Aya Bianca Into

03/19/2022

Step 1

To calculate the average A/R, we need to add the A/R at the beginning of the year (Jan 1) and the A/R at the end of the year (Dec 31), and then divide by 2. Average A/R = (A/R Jan 1 + A/R Dec 31) / 2 Average A/R = (10,000 + 15,000) / 2 Average A/R = 25,000 / Show more…

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'Zips Corp reports the following: Net Credit Sales 100,000 A/R Jan 1 10,000 ADA Jan 1 1,000 A/R Dec 31 15,000 ADA Dec 31 2,000 The Accounts Receivables Turnover Ratio is 10 9.09 100'