If average accounts receivable is $35,000 and net sales total $100,000,what is the receivables turnover?
A)0.3 times
B)0.4 times
C)2.9 times
D)126 times

Name: If average accounts receivable is $35,000 and net sales total $100,000,what is the receivables turnover? A)0.3 times B)0.4 times C)2.9 times D)126 times
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The receivables turnover ratio is calculated by dividing net sales by average accounts receivable. So, receivables turnover = $100,000/$35,000 = 2.9 times. Therefore, the correct option is C.

If Average Accounts Receivable Is $35,000 and Net Sales Total