A company has an accounts receivable turnover of 10 times. The average net accounts receivable during the period are ¥500,000,000. What is the amount of net credit sales for the period?
A) ¥50,000,000
B) ¥5,000,000,000
C) ¥500,000,000
D) Cannot be determined from the information given

Question

Quizplus · Accepted Answer

Accounts receivable turnover = Net credit sales / Average net accounts receivable
10 = Net credit sales / 500,000,000

Net credit sales = 10 x 500,000,000 = ¥5,000,000,000

A Company Has an Accounts Receivable Turnover of 10 Times