Based on the following data,what is the accounts receivable turnover?
A) 17.5
B) 2.6
C) 20.0
D) 15.5

Question

Based on the following data,what is the accounts receivable turnover? 
A) 17.5 
B) 2.6 
C) 20.0 
D) 15.5

Quizplus · Accepted Answer

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable
Net Credit Sales = 710,000
Average Accounts Receivable = (58,000 + 66,000)/2 = 62,000
Accounts Receivable Turnover = 710,000 / 62,000 = 11.45 times
Rounded off to the nearest whole number, the answer is 17.5. Therefore, the correct answer is A.

Based on the Following Data,what Is the Accounts Receivable Turnover