Question
The following are the selected account balances or total as of January 1, 2020: Accounts receivable $380,000 Merchandise Inventory $260,000 Current Liabilities $280,000 Selected relationship
The following are the selected account balances or total as of January 1, 2020:
Accounts receivable $380,000
Merchandise Inventory $260,000
Current Liabilities $280,000
Selected relationship for the year:
Gross profit rate 40%
DSO based on average 40 days
Inventory turnover based on COGS 8X
Current ratio 3:1
Acid Test ratio 2:1
The balance of accounts receivable as of December 31, 2020 is
- $380,000
- $390,000
- $400,000
- $420,000
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Auditing And Assurance Services
Authors: By David N. Ricchiute
6th Edition
0324024029, 9780324024029
