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With a Beginning Accounts Receivable Balance of $70,000,an Ending Balance

question 3

Multiple Choice

With a beginning Accounts Receivable balance of $70,000,an ending balance of $140,000,and net credit sales of $800,000,compute accounts receivable turnover ratio (rounded to the nearest tenth) :

Definitions:

Prepaid Expense

An expense paid in advance of its due period, recorded as an asset on the balance sheet until it is actually incurred and then shifted to an expense account.

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so that they comply with the accrual concept.

Journal Entries

Records of financial transactions in the order they occur, which are then posted to the appropriate accounts.

Debits

Entries in accounting that increase an asset or expense account, or decrease equity, liability, or revenue accounts.