Outdoors Unlimited Had Net Sales of $285,000 for Year 1,and

question 203

Essay

Outdoors Unlimited had net sales of $285,000 for Year 1,and $575,000 for Year 2.The year-end balances of accounts receivable were $49,000 for Year 1,and $85,000 for Year 2.Calculate the days' sales uncollected at the end of each year and describe any changes in the apparent liquidity of the company's receivables.

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Definitions:

Paid Absences

Compensation provided to employees for days not worked, such as holidays, vacations, or sick days.

Expense Account

An account that records the costs incurred by a company in the process of earning revenue.

Payable Account

An accounting record that shows the total amount of money owed to creditors for goods, services, or loans provided.

Employee Health Insurance

An insurance coverage that provides benefit payments for healthcare services to employees, often paid for wholly or in part by employers.