Using the following data for the current year, determine the accounts receivable turnover. ? $\begin{array}{lr}
\text { Net sales on account during the year } & \$ 457,065 \
\text { Cost of merchandise sold during the year } & 461,280 \
\text { Accounts receivable, beginning of year } & 75,290 \
\text { Accounts receivable, end of year } & 26,280 \
\text { Inventory, beginning of year } & 185,000 \
\text { Inventory, end of year } & 169,570
\end{array}$
A) 7
B) 8
C) 10
D) 9

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as Net Sales divided by the average accounts receivable. Net sales are $457,065. The average accounts receivable is $(75,290 + 26,280) / 2 = 50,785$. Therefore, the turnover is $457,065 / 50,785 = 9$.

Using the Following Data for the Current Year, Determine the Accounts