With a beginning Accounts Receivable balance of $60,000, an ending balance of $66,000, and net credit sales of $520,000, compute accounts receivable turnover ratio. (Round your answer two decimal places.)
A) 0.12
B) 8.25
C) 8.67
D) 7.88

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated as net credit sales divided by the average accounts receivable. The average accounts receivable is the sum of the beginning and ending balances divided by 2, which is ($60,000 + $66,000) / 2 = $63,000. The turnover ratio is then $520,000 / $63,000 = 8.25.

With a Beginning Accounts Receivable Balance of $60,000, an Ending