Calculating period needed to clear off a credit

Related BrainMass Solutions

• Essential Features of the Allowance Method of Accounting

  Direct Write-off Method--the direct write-off method recognizes bad debt expense in the period in which the account receivables prove to be uncollectible.

• Calculating the Average Collection Period

  161751 Calculating the Average Collection Period Trying to find the receivable turnover, the day's sales in receivables, and how long it took on average for credit customers to pay off their accounts.

• Net credit position

  Now it does not need to invest in receivables, rather it has a surplus of $14,000 The solution shows all the steps for calculating the net credit position for a given company under two different circumstances.

• Corporate Finance : Liquidity Ratios, Profitability, Collection Period, Inventory Turnover, Leverage and Sustainable Growth

  How long did it take on average for credit customers to pay off their accounts during the past year? 4. Calculating Inventory Turnover.

• Bad Debt Expense

  If A/R has been written off during 2004, we will need to debit allowance for doubtful accounts, which will make the balance in allowance for doubtful accounts to be debit balance of $1,000.

• Allowance Method of Accounting

  Allowance method of accounting for bad debts is defined as a method of calculating accounts which are uncollectible during specified period of time or at the end of the each period of financial year.

• Corporate Finance : Liquidity Ratio, Collection Period, Inventory Turnover, Leverage Ratios, Du Pont Identity, Payables and Market Value

  How long did it take on average for credit customers to pay off their accounts during the past year? 4. Calculating Inventory Turnover.

• Bad debt expense

  method: In percentage-of-receivables Method the amount of the estimated loss is calculated as a percentage of Account receivable balance at the end of the given period and the allowance to be debited to Bad debts expenses account is determined after

• Calculating EMI for a loan

  229360 Calculating EMI for a loan You want to buy a car. Based on your current finances, you have up to $3,200 in savings that you can use for a down payment. You believe you can afford no more than $160 per month in loan payments.