Knowledge Check 01 On July 1, Year 1, the Barley Company loaned $50,000 to the Jackson Co. The note has a stated interest rate of 10% and will mature on June 30, Year 2. All payments for principal and interest will be received at maturity. How much interest revenue will Barley report on its income statement for the year ended December 31, Year 1? Interest Knowledge Check 01 Which of the following is the term used to describe the process of selling and collecting? O Credit-granting activities Receivables turnover o Operating cycle O Turnover ratio Knowledge Check 01 Which of the following statements about the receivables turnover ratio is true? O A higher receivables turnover ratio means faster (better) turnover. O The receivables turnover ratio is calculated by dividing net sales revenue by average receivables. O The receivables turnover ratio is calculated by dividing 365 by the number of days to collect receivables. O The receivables turnover ratio measures the average number of days from sale on account to collection. Knowledge Check 01 Which of the following statements about the days to collect is true? O A higher number of days to collect receivables is more desirable than a lower number. O The days to collect is calculated by dividing net sales revenue by average net receivables. O The days to collect is calculated by dividing the receivables turnover ratio by 365. O The days to collect measures the average number of days from sale on account to collection. Knowledge Check 01 Treadwell Tire Company had net accounts receivable of $67,900 at the beginning of the year and $72,400 at the end of the year. The company's net sales revenue during the year was $876,875. What was the receivables turnover ratio for the year? (Round your answer to 1 decimal place.) Receivables turnover ratio