Jim Debt was reviewing the total accounts receivable. This month he received $80,000 from credit customers. This represented 40% of all receivables due. The total amount of accounts receivable is:
A) $200,000.
B) $320,000.
C) $500,000.
D) $230,000.
E) None of these.

Question

Quizplus · Accepted Answer

If $80,000 represents 40% of the total accounts receivable, then the total accounts receivable can be calculated as $80,000 / 0.40 = $200,000.

Jim Debt Was Reviewing the Total Accounts Receivable