Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores....
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Accounting
Accounts Receivable Analysis
Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions):
Xavier
Lestrade
Sales
$8,500,000
$4,585,000
Credit card receivablesbeginning
820,000
600,000
Credit card receviablesending
880,000
710,000
14-9a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a year.
Xavier
Lestrade
1. Accounts receivable turnover
2. Number of days' sales in receivables
days
days
Answer & Explanation
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