Frank's Franks posted a cost of goods sold of $5,000 and had an average payables of $125.Calculate the Accounts Payable Period.

Question

Quizplus · Accepted Answer

Step 1 - Compute the Payables Turnover.
Payables turnover = 11ea7fdb_fc3c_7f79_a768_91cb61ca06d8_TB2902_11 Payables turnover = 11ea7fdb_fc3c_7f7a_a768_f54fded4e0af_TB2902_11 = 40
Step 2 - Use the Payables Turnover to compute the Accounts Payables Period.
Accounts payables period = 11ea7fdb_fc3c_a68b_a768_574004daa994_TB2902_11 Accounts payables period = 11ea7fdb_fc3c_a68c_a768_43d8c8d0fe60_TB2902_11 = 9.125

Frank's Franks Posted a Cost of Goods Sold of $5,000