A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period?
A)0.33
B)5.00
C)20.0
D)73.0
E)3.0

Name: A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period? A)0.33 B)5.00 C)20.0 D)73.0 E)3.0
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Question

Quizplus · Accepted Answer

Accounts Receivable Turnover = Net Sales / Average Accounts Receivable
= $1,200,000 / $400,000
= 3.0
Therefore, the answer is E) 3.0.

A Company Has Net Sales of $1,200,000 and Average Accounts