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falin lawson
on Oct 09, 2024

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The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year.If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:

A) $2,600,000
B) $2,000,000
C) $2,400,000
D) $2,500,000

Accounts Receivable

This is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit terms.

  • Understand and calculate accounts receivable turnover and total sales.
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jeffry fredericOct 16, 2024
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