Question

The following annual account balances are from Armour Sports at December 31. Year 2 Year 1 Accounts receivable $ 59,568 $ 57,325 Net sales 1,167,533 1,090,531 Complete the below table to calculate the number of days' sales uncollected for the years Year 1 and Year 2. (Round your "Days' Sales Uncollected" to 1 decimal place.) Choose Numerator: Days = Days' Sales Uncollected Choose Denominator: X X x x Days' Sales Uncollected Days' sales uncollected days days = Year 2: Year 1: i Is the company's collection of receivables improving? Yes No

Answer 1

	Days sales in Uncolleced
	Accounts receivable	/	Net sales	x	365	=	Days sales uncollected
Year 1	$                         57,325	/	$ 1,090,531	x	365	=	19.2	Days
Year 2	$                         59,568	/	$ 1,167,533	x	365	=	18.6	Days

1.

BRANCH COMPANY
Bank Reconciliation
July 31
Bank statement balance		$ 26,116	Book balance		$ 24,952
Additions:			Additions:
Deposit in transit		$    6,632	Note collected by bank		$    5,500
Deduct:Outstanding checks			Deduct:
#3031	$ 1,030		Error in recording of check #3056 ($1,230-1,220)	$    10
#3065	$     291		NSF Check	$ 805
#3069	$ 1,798		Bank Service charges	$      8
		$    3,119			$        823
Adjusted bank balance		$ 29,629	Adjusted book balance		$ 29,629

2.

Date	Account title	Debit	Credit
1	No entry required
2	No entry required
3	Rent expenses	$        10
	Cash		$        10
	(To correct rent expenses)
4	Cash	$ 5,500
	Note receivable		$ 5,500
	(To record collection of note)
5	Accounts receivable	$     805
	Cash		$     805
	(To record NSF Check)
6	Misc. expenses	$          8
	Cash		$          8
	(To record bank service charges)
7	No entry required

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