Given the following information, compute accounts receivable turnover. $\begin{array}{|lr|ll|}
\hline \text { Gross sales } & \$ 150,000 & \text { Accounts receivable, beginning of year } & \$ 18,000 \
\hline \text { Sales } & 135,000 & \text { Accounts receivable, end of year } & 22,000 \
\hline
\end{array}$
A) 6.75
B) 7.50
C) 6.13
D) 6.82

Question

Quizplus · Accepted Answer

Accounts receivable turnover = Net sales / Average accounts receivableAverage accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2= (18,000 + 22,000) / 2= 20,000Accounts receivable turnover = 135,000 / 20,000= 6.75

Given the Following Information, Compute Accounts Receivable Turnover A) 675 B) 7

Given the Following Information, Compute Accounts Receivable Turnover A) 675
B) 7