The accounts receivable turnover is computed by dividing total sales by the average net receivables during the year.

A multiple-choice question with one possible answer.

Group of answer choices

True

False

Neither True nor False

Orange Company has recorded a journal entry with a debit to Sales Returns and Allowances and a credit to Accounts Receivable. What is the most likely explanation for the journal entry?

A multiple-choice question with one possible answer.

Group of answer choices

Orange charged interest on a balance due that was not paid within a specified period.

Orange recorded sales on account.

Orange offered a discount for prompt payment.

Orange accepted a return from a customer.