Powers Company reported Net sales of $1,200,000 and average Accounts Receivable,net of $78,500.The accounts receivable turnover ratio is:
A)0.65 times.
B)14.3 times.
C)28.6 times.
D)15.3 times.
E)16.3 times.

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover Ratio = Net Sales / Average Accounts Receivable, net

= $1,200,000 / $78,500

= 15.3 times

Therefore, the answer is D) 15.3 times.

Powers Company Reported Net Sales of $1,200,000 and Average Accounts