Learn the accounts receivable turnover ratio, how to measure it, and what the formula looks like in our guide to this important AR metric. A sales journal is used to record the merchandise sold on account.The Accounts Receivable to Sales Ratio is a business liquidity ratio that measures how much of a company's sales occur on credit. Days' Sales Outstanding (DSO): a measure of the overall size of your accounts receivable based on the number of sales made in an average day. Found in the "current assets" section of the balance sheet. Manage and comply with local, state, and federal government reporting requirements and tax filings. (E) The records should be complete and adequate and all sales and purchases should be properly accounted for in the records. Under the allowance method, the uncollectible account expense for the period is matched against the sales for that period. San Jose, California.