Which of the following transactions will result in a decrease in the receivables turnover ratio?
A)The journal entry to record bad debt expense.
B)Writing off an uncollectible account receivable.
C)Selling inventory on account.
D)Collecting an account receivable.

Question

Quizplus · Accepted Answer

Selling inventory on account increases accounts receivable, which can decrease the receivables turnover ratio by increasing the average accounts receivable balance without immediately affecting sales revenue.

Which of the Following Transactions Will Result in a Decrease