Quiz Ch 05 – Accounts Receivable Turnover Computation
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What is the formula to compute accounts receivable turnover?
What is the formula to compute accounts receivable turnover?
Which term is used interchangeably with “days’ sales in receivables”?
Which method of estimating uncollectible accounts is NOT acceptable according to Generally Accepted Accounting Principles (GAAP)?
Which action could a company take to increase its quick ratio
What journal entry is made under the direct write-off method when an account is considered uncollectible?
What are the names of the income statement and balance sheet approaches used for estimating uncollectible accounts?
What item is included in the numerator when calculating the quick ratio
Using the percent-of-sales method, Seidner Company has credit sales of $1,000,000, sales returns and allowances of $10,000, accounts receivable of $560,000, and an allowance for uncollectible accounts (debit) of $42,000 at year-end. What does the debit balance in the allowance for uncollectible accounts indicate?
Smith Company has credit sales of $1,000,000, sales returns and allowances of $10,000, accounts receivable of $560,000, and an allowance for uncollectible accounts (debit) of $42,000 at year-end. Using the percent-of-sales method, if uncollectible accounts were estimated at 1% of credit sales in the prior year and no year-end adjusting entry has been made for Uncollectible-Account Expense, what action should the company take in regards to uncollectible accounts?
What is the impact of the direct-write off method on net income and total assets of a company in the year of the sale?