A Company Reports the Following

question 94

Essay

A company reports the following:

Determine the (a)accounts receivable turnover,and (b)number of days' sales in receivables.Round your answer to one decimal place.

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Definitions:

Warranty Accrual Method

An accounting approach where a company estimates future warranty expenses and records them as a liability at the time the product is sold.

Warranty Expense

Costs a company expects to incur as a result of repairing or replacing products within the warranty period.

Warranty Costs

Expenses incurred by a company due to servicing or replacing products under warranty.

Premium Expense

The cost associated with purchasing insurance policies, which may be recognized periodically as an expense in financial statements.