Allatoona Landing Reported Net Credit Sales of $1,250,000 and Cost

question 62

Multiple Choice

Allatoona Landing reported net credit sales of $1,250,000 and cost of goods sold of $900,000 during the current year. Its beginning balance of Accounts Receivable was $175,000. The accounts receivable balance decreased by $25,000 during the year. Rounded to two decimal places, what is the company's accounts receivable turnover rate for the current year?

• A)7.14
• B)7.69
• C)8.33
• D)11.03

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Definitions:

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.

Impaired Memory

A reduction in the ability to remember information or events, which can be temporary or permanent.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.