8) When a business factors its accounts receivables, the business 8) A) no longe

Question

8) When a business factors its accounts receivables, the business 8) A) no longer has to deal with the collection of the receivables from the customers uses the receivables as security for a loan C) receives the total amount of the receivables froem the factor D) receives cash, less an applicable fee, after the factor collects from the customers 9) The accounts receivable tumover ratio for a merchandiser is 9.6 times Caloulate the days' sales in receivables for the merchandiser. (Round your answer to the nearest day.) A) 41 days B) 38 days C) 29 days D) 34 days 9) Write your answer in the space provided or on a separate sheet of paper 0) Mansfield Office Furniture Store reported the Bollowing selected items at December 31, 2019 (previous year- ESSAY. 2018- aounts are also given as needed Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2018 240,000 Net Credit Sales Revenue Term Liabilities Other Current Other Current Liabilities 125,00 Short- term Investments Compute Mansfield's (a) acid- test ratio; (b) accounts recelvable turnover ratio (round to 2 decimal places); and () days sales in receivables for 2019 (round to the nearest day). Show your computations

Explanation / Answer

Question 8). Answer :- Option A). no longer has to deal with the collection of receivables from the customers.

Question 9). Answer :- Option B). 38 Days.

Explanation :- Days' sales in receivables = 365 / Accounts receivables turnover ratio.

= 365 / 9.60

= 38.02 Days (Rounded off to 38 Days).

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