A company had net sales of $550,000 and an average accounts receivable of $110,000. Its accounts receivable turnover equals 5.0.

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated by dividing net sales by the average accounts receivable. In this case, the accounts receivable turnover would be:

Accounts Receivable Turnover = $550,000 / $110,000 = 5.0

Therefore, the statement is true.

A Company Had Net Sales of $550,000 and an Average