The Dollar Amount for Accounts Receivable in the Adjusted Trial

question 137

Multiple Choice

The dollar amount for Accounts Receivable in the Adjusted Trial Balance Debit column of a Trial Balance Worksheet is obtained by:

• A)Taking the Unadjusted Trial Balance Debit column plus the Debit Adjustments column minus the Credit Adjustments column
• B)Taking the Unadjusted Trial Balance Debit column
• C)Taking the Unadjusted Trial Balance Credit column
• D)Taking the Unadjusted Trial Balance Credit column plus closing entries

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Definitions:

Collection Period

A metric that measures the length of time it takes for a business to convert its accounts receivable into cash.

Accounts Receivable Balance

The combined total of receivables a business has from its customers for goods or services that have been consumed but remain unpaid.

Calendar Year

The period of time from January 1 to December 31 in the Gregorian calendar.

Sales Estimate

An approximation of the number or monetary value of sales that a company expects to achieve within a certain period.