Respuesta :
These sales will impact Bextra's current ratios as current assets rise and existing obligations stay the same, the current ratio rises.
The current ratio is defined as Total assets/ total liabilities,
Your journal entry will now be based on the following data to report sales:
Debit money: 20,000
35,000 in debit receivables
Revenue from Credit Sales: 55,000
As a journal entry, you would write down:
The price of debt goods Sold is 38,000
38,000 credit goods on hand
According to the data, current assets will increase since 55,000-38,000 will be favorable, while current liabilities will stay the same.
Your ratio will climb if your current assets continue to grow while your current obligations continue to shrink.
Proof of the current ratio can be achieved using random numbers. Therefore, dividing the present 100,000 assets by 50,000 would result in a 2:1 ratio.
The total assets will now be increased to 150,000 and will be divided by current liabilities at a ratio of 50,000 to 3.1.
Consequently, as the current increases, the current ratio rises.
To learn more about Bextra's current ratio, refer to the link below.
https://brainly.com/question/28214599
#SPJ4
