ACC 291 - PRINCIPLES OF ACCOUNTING II Week 1 Assignment

Question 1

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $76,000; Credit Sales $819,000; and Sales Returns and Allowances $48,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 2

Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company.

Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Is accounts receivable a material component of the company’s total current assets?