Answer Happy

entry INSTRUCTIONS Prepare entries 'n general journal form for West Motors relating to this transac tion and to the note for the year ended December 31. Include the adjusting e needed to record interest earned to December 31. (Adjusting entries are made only is, an equal amount of interest revenue is considered earned in each month.) at year-end. Assume the discount is amortized by the straight-line method-that PROBLEM 8A-1 Hey, Pal When You Gonna Pay for This Beer? INSTRUCTIONS West Motors uses a perpetual Truck Lines were carried in West's inventory PROBLEMS Group A Shown below are the net sales and the average amounts of accounts receivable of two beverage companies in a recent year: Adolph Coors Anheuser-Busch Cos., Inc. (Dollars in Millions) Average Accounts Receivable $ 95 337 Net Sales $1,315 7,677 a For each of these companies, compute: 1 The number of times that the average balance of accounts receivable turned over during this fiscal year. (Round to the nearest tenth.) 2 The number of days (on average) that each company must wait to collect its accounts receivable. (Round to the nearest day.) b Based upon your computations in part a, which company's accounts receivable appear to be the more "liquid" asset? Explain briefly.