Turbo Company's accounts receivable account balance was $100,000 at the beginning of the year and $120,000 at the end of the year.Turbo's percentage change calculation at the end of the current year is
A)16.7% decrease.
B)16.7% increase.
C)20% decrease.
D)20% increase.

Question

Quizplus · Accepted Answer

To calculate the percentage change, we use the formula:

Percentage change = (Ending value - Beginning value) / Beginning value x 100%

Plugging in the numbers given, we get:

Percentage change = (120,000 - 100,000) / 100,000 x 100%
Percentage change = 20%

Therefore, the correct answer is D) 20% increase.

Turbo Company's Accounts Receivable Account Balance Was $100,000 at the Beginning