south-rims-has-an-accounts-receivable-balance-at-the-end-of-2018-of-357470-the-net-credit-sales-for-

Question

South Rims has an accounts receivable balance at the end of 2018 of $\$ 357,470 .$ The net credit sales for the year are $\$ 769,346 .$ The balance at the end of 2017 was $\$ 325,300 .$ What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)?
A. 2.02 times
B. 2.25 times
C. 2.15 times
D. 1.13 times

Puneet Prajapati · Accepted Answer

so you will understand the meaning off a d r. Okay, so the full form off this a combs it is evil. Racial. Okay, so what actually shows it shows deck. How much? Dinz. The entity has two kids. Every Steckel balance on its books. Who gentry it? The I couldn&#x27;t. But I dip sips. However we every time, our technical definition here. But we will understand that through a formula. So we have a formula for idea, which is that that deep scenes bar the next night the whole formula. Okay, for sake of simplicity, opening balance off letters less see a lot. See, a lot means closing balance off debt is divided back. So this whole down, which is in the back, it is also known as a pledge doctors Bennett&#x27;s. So this racial shows that that how much that how much that average decker balance the entity has to keep so that it can produce this negative sense. Okay, Now let&#x27;s take values we have. Okay, So then actually senses 769 346 Okay, So the opening details off balance is 3 to 5 300 Okay. And that closing balance of their houses 357 four, 70 Okay, what is the opening balance of directors means that the balance of letters that has been carried forward from last year too got in front of you. And what is the closing balance of records? Means the balance for the gout in financially. Okay, at the end of the invention. So after you will duty calculation, you will get Groupon through five times. Okay, so it is Do it is very easy toe do this calculation. However, interpreting interpretative open to five times is very essential for us. So who want to five times means that and he has to give. Okay, So 2.25 times means this amount 7693.6 is who 0.25 times off this amount. Okay, this whole amount, after doing the calculation within the records. Okay, so it means that and on average, identity has to give this parents on it. Books who generator neck credit sale of this much. Okay, So African solution matches with choice. Be sort choice. B is the correct answer. However, you can write down what I have returned so far. Who are every defendant solution. However, we have a gene double solution

Puneet Prajapati · Answer

Okay, So, VVe understand. That&#x27;s how we did it in your mind. Okay, so we will understand. First of all, the collection Second. Okay, So it is the period within which the entity Sure collect the amount right from the selling the product. Okay. Next, take an example. Suppose it. Biggs took two days who sell to sell different estimate. Okay, then it takes 15 days. Who recovered the amount there is addictive. Terrible from the customer&#x27;s. So the election cycle will be 40 45 days. Okay. However, there is a specific formula that computer, so we but he present this represent true number off days sales. Okay, how do we know this 30 65 divided by ACOs that Know what? Racial? Okay, accounts receivable. Another edition. This is the formula to compute the collection cycle. Okay, so now we will computed 3.34 we have. That&#x27;s the getting of it is so it is coming out to be 109 days. It means that the energy takes 109 days. Who sells liberate to the customers. And within that, Peter also than today&#x27;s able to recover the amount from the customer. Okay, so our current solution matches with That is choice be okay. That issue England&#x27;s gonna invest, That&#x27;s all for our solution, okay?

Puneet Prajapati · Answer

Okay. So even at this time, the meaningful. But I Do you see it? Okay. However even understand, First up will be built by definition are bad that we really take an example. And how does it ended? He estimated the non collectable balance for different engineer on different matters. Okay, on the basis of different. So it is the amount off sale. Okay, which is north collected and ideology. Okay, so we have return a very small definition. However, we will investing that. What is the meaning of the deputation to an example. Okay. Yeah. So that&#x27;s a support business today. What was a business? One that will beings And for nature there&#x27;s Mississippi. Who is that customer? Okay, so misters it&#x27;s or some books all $500. Who, Mr. See? Now Mr sees a close was because too much to Mr Lee and me to see so that I will say human later, partner. Let&#x27;s say within moments. Okay. Within two months, Mr C will be who was today. Okay, so the accent will be known as this is the example off. But I do see okay. However, what happens when there is accredited? Still so there becomes a balance of craters. Parents off Data&#x27;s. So in that case, Mr C, he&#x27;s our deck. That who? Mr. Okay. For how much? What? $500. Now, Mr A follows a practice. Mr. If all of the practice off estimation. Okay, off non collective in minutes. Like to suppose Mr He has. But I did see now we haven&#x27;t destroyed them at moving off, Eric, since we will play example from that. Was it that perspective? So let&#x27;s in. The original has engineered by Mr Day for the current financial year is $10,000. No, As for the specific method income different matter what happens, miss up here. Say, is that okay? Out off this, those $10,000 I will not be even to collect. Yeah, okay. I will not be able to collect 10% of the amount off the pregnancy. So So it means non collectable amount. What will be the non collective amount? Okay, what will be the non directive amount? $1000. Okay, so it means that so it means that Mr Estimates on the basis often agencies Okay, so now in the given gifts also. So the person that has to be applied on credit sale. Okay, now what happens next? I suppose the sales are in the current cases. 3 $90. Okay. And the personally, what is the person designated here? That is three point 5%. Okay, so that is coming out to be $13,000. $13,650. Okay, so that matches which I see. So Choice A is the correct answer. Okay. However you can write What have you done so far? Are your lord books for future reference? Okay, however, choice is the correct answer. That&#x27;s all for our solution.

Puneet Prajapati · Answer

Okay. So people like Mr I didn&#x27;t see negative. Yeah, it is the maybe you think it&#x27;s allows the customer Cooper jays the set. Jay&#x27;s the sex in installed base subject. Don&#x27;t teaming being made. You mean shit. Okay, so be very day. Our example. Okay. However, I always write the combination off any concept. Okay, So you can refer the you can defend the concert for future reference. Okay? And for your back, a revision on So So now you think that&#x27;s understand? Digs up. Let&#x27;s suppose, Mr B. Yeah, he&#x27;s a very good person is willing to buy a house. Okay, is very cool. Buy a house, which is No, he goes to the bank. So how&#x27;s Waas work off? Let&#x27;s see $100,000. So Banks said how much gas you have in your hand or your bank deposits? So, Mr E Mr Research, I I do have one 10,000. So banks that okay, they will give you night $90,000. Okay, eyes and you. Okay. It means that if bank will be $90,000 to mystery, then bank bank will be able to recover $90,000 from history Also. So now that is, after that production, Mr A will become that. Oh, 90% that this 90,000 because 10% has been financed with only quickie off mystery. Okay, $10,000 been history percent over $100,000 and remaining 90% has been financed by bank. So bank will recover that. Come on from mystery. Okay, Mr Become that That off? Nine people saying off. But the house. Okay, so that is work the situation in bickering piece. So Louisville computing that amount of bickering is as we have $35,000 then 10% has been made as downstream it. Okay, so we have who paid nine d person with the tire of it. Okay, so the car dealer. So what? We have 31 $500. Okay, So what is that back matches with? Choice it. Okay, so this is the any truth. This is the final lots of however, before that, you need to understand the whole concept of financing agreement bordered by that, please understand the example that moved with them in solution. Okay. Otherwise, what will happen? You will get confused. So still other characteristic choices, that sort of ascension

Puneet Prajapati · Answer

ve vill in the stack. Be meaning or gators. Okay? Or alternatively, we say it comes to deceive. Okay, so he&#x27;ll under standard through an example. Followed by that people understanding lurking methodologies. Okay. No, that you&#x27;re supposed there is mystery. And that is Mr C. So Mr is a businesswoman. Okay. Here. The hooting furniture. Okay. He says from nature to their customers, however, see is a trustworthy customer who was steady. So Mr Mr is of light someone worse. Okay, Funded you off. World Rubies $1000. Okay, so Mr as Mr C was addressed with the customer. So Mr C said that I would be you with indolence. Okay, so, Mr Si se that I will pay you within ruins so they will be to account affected. Okay, first of all, sales account. Okay, sales. The cardinals have a new OK, so Mr Religion really Revenue $1000 because he is selling their goods to Mr C. What stuff or doctors will be creative? Okay, because Mr c will be cleared it because Mr C will be able to sell Mr. C will be able to sell. Okay, Mr Siegel, Mr Singh will pay whom I started within two months time. Now what happens? Mr. B estimates that off total. So, Mr C. First apart, Mr C will be a doctor for Mr So what? Mr estimates that four current financial year or for every even injury whatever be the account balance. Okay. What kind of account? The balance of letters. Okay, they haven&#x27;t be. They mean stands that 10% of that others will not be okay and percent Americans with. So let&#x27;s say suppose. But in this finding, Children within this financial year Tariff on angelea Current one engine yet be Emily Housing balance as balance of letters for Mr C. Okay, so for current allowance for birthdays will be $100. Okay, It means $100 will nor be deceived. OK, known collectible $100 will not be corrected for me. Some doctors. Okay, Next. I suppose so. This amount will be a credit balance. Okay? Because that has ever David balance. So who showed that that there is $100 as an amount which is known collective? So it will be was integrated violence. It will. It will always have a plan. Independence. So now next, I suppose for current financial year we have, you have $100. Okay, But now for previous financially Yet the balance waas the batter&#x27;s waas want of $3. Okay, so obviously be even having to the balance of what your daughter&#x27;s. No, we are having $100 So v dealmaking adjustment and three or $50 woody present that the cover allowance for Bender&#x27;s allowance for non collective mom&#x27;s hair has really was down 100 Okay from previous financial year. So evil person adjustment entry for $50 on you. OK, so that&#x27;s all for the current solution also. So what? We have the right that that for the therefore, the current financial year, we have estimate, do the balance off $45,000. Looking back, believe your balance. There will be a credit balance for allowance for bad necks. However, previously in previous financial year in previous financial year we have balance off. Well, it doesn&#x27;t, which means our allowance for known collective amount has increased from previous financial year. Okay, so evil person adjustment people How much? Only 23,000. Okay, because out of 45,000 because because we are working for current financial year, so we will look for current financially and previous financial year. So out of 53,000 has been booked into this year. Okay. However, for previous financial year, it is the 11 from previous. But out of 45 the handbook 1000 about. So now we have to do Bob and I Just minutes before that, he spent that do help in dollars. Okay, so that that matches with choice E. Okay, right. Choice sees the I see the correct answer. Okay, so I see the correct answer. However you get, however you again that I don&#x27;t What about everything so far? Okay. The example and all of that stuff. Okay. I rejoice with the correct answer. That&#x27;s all for extradition.

Puneet Prajapati · Answer

okay. So evil. Unless that the meaning Lof bad bags. Okay, however, the violinist and it with example before definition purpose, you can write it. Is that a mom? Which is no one collected by the business in? Okay, let&#x27;s suppose the mystery who is out business order and who isn&#x27;t dealing off. We don&#x27;t make Golic. Perhaps I won&#x27;t be a business to see who is up rest. Vardy customer mystery Have you so Mr A God&#x27;s work? Because it sold some goods. Well, $500 Now what happens? Mr. C said that I would be You would give it in five months. Okay. However, Mr sees across with the customer, but he is not able to buy one that donors anything. So he asked for five months time. So know what happens. Mr. Is that next estimated That How much next estimated that How much off the back? Those balance. Okay. How much off the customers balance is known collectively building the other. Okay, let&#x27;s suppose Mr Age and break it for financially. See, it&#x27;s off for current financial year. The pregnancy. So this same Billy, known as can I drink sale is a sale in which the customer is the amount. So what? Parents are in Syria? Let your support Mr. He hasn&#x27;t 10,000 of these. So Mr He estimates Okay, that I will not be able to correct collected then person offset. Gemma. Okay. Non electable are sanctions. Okay? No telling people about. So what? That percentage this is then puts it off this arm. Okay, so this will be you can ask allowance for Baghdad violence for north, the actual medic. Because this is lordy and Children. We just It is the allowance these on the estimation made. So that is my BR writing us allowance. So let&#x27;s suppose we have created 1000 back housing as allowance for bed. Dad, okay away. But however, in the current in the previous financial year. So this is night. This $1000 would be what I didn&#x27;t find. Engineer. However, for this financially, it the doctor&#x27;s been in force. Okay, Does the flowers for my big balances, I wonder girls And for current financial year, what we can&#x27;t be having you got having love $1000 billions. So at the end of the current financial year and the end after in financially and be Bill passed and just went in three or $500 Who add on movie balance? Okay, Who and onto the balance off allowance for back there? Because out Off, Because we ve bugging foreign financially. It&#x27;s so we have 1000. We should have 1000 balance $1000 balance for allowance for better, however be. But we were only having $500 still last year. So now we have a positive discrimination before $500. Okay. Who show that That our total balance for allowance for $50,000. So I just vanity will be passed for only $500. That is that differential. Okay, Like vice in the current case also. Okay, as we have for the current financial year, you have balance off alarms for beggars. Well, the current financial year And for the previous financial here, Well, what we have you have Yankee 6000 the 6000 as dependents. So at the end, off her identity and how much we have purpose, do you have a boss for repeated problems? So just bin it even be possible I just made and deep every possible 50 a couple. Okay, small that back matches with choice. Be so Join Beastie. Correct answer. Okay. However, you can write on your local African. So far, however, choice busy Erekat&#x27;s okay, that&#x27;s all for our solution.

Problem

What information can best be elicited from a rece…

Problem 12 Medium Difficulty

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting