Reference no: EM132493318
Question 1 - On May 1, 2018, Fitz installed a $498,000 sound system for International Arena. Fitz agreed to accept a $495,000 six-month, noninterest bearing note due on November 1, 2018. Fitz prepares financial statements at the end of every calendar year. Fitz's journal entry to record the collection of the note plus accrued interest on November 1, 2018, will include a ________.
A. credit Note Receivable for $495,000
B. debit Interest Revenue for $3,000
C. credit Note Receivable for $498,000
D. credit Interest Revenue for $495,000
Question 2 - The following company information is available:
Average accounts receivable $300,000
Average inventories 150,000
Average accounts payable 100,000
Net sales 2,000,000
Cost of goods sold 1,800,000
Purchases 1,160,000
What is the company's accounts receivable turnover ratio? (Assume all sales are made on credit.)
A. 0
B. 54.7
C. 6
D. 6.7