If the average collection period is 60 days what is the accounts receivable turnover?
A) 6.0 times
B) 6.1 times
C) 12.2 times
D) None of these

Name: If the average collection period is 60 days what is the accounts receivable turnover? A) 6.0 times B) 6.1 times C) 12.2 times D) None of these
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Question

Quizplus · Accepted Answer

Accounts receivable turnover is calculated as 365 days divided by the average collection period. Therefore, if the average collection period is 60 days, the accounts receivable turnover is 365/60 = 6.1 times.

If the Average Collection Period Is 60 Days What Is