Answer (A) is correct . The accounts receivable turnover (3.65) equals sales divided by the average balance in accounts receivable. Thus, dividing the $1,241,000 of sales by 3.65 gives an average receivables balance of $340,000. The average receivables balance is the average of the beginning and ending balances. Since the beginning balance was $355,000, the ending balance must be $325,000 [($340,000 × 2) – $355,000].
Answer (B) is incorrect because The accounts receivable balance is not $216,986.
Answer (C) is incorrect because The accounts receivable balance is not $78,973.
Answer (D) is incorrect because The beginning balance in accounts receivable was $355,000.
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White’s balance in accounts receivable at November?30, Year 2, is