Kitty-Lion Company has a beginning Accounts Receivable balance of $69,000 and an ending Accounts Receivable balance of $60,000. Sales are $249,000. Kitty-Lion's Accounts Receivable turnover rate is: (Round your final answer to two decimal places.)
A)3.61.
B)4.15.
C)3.86.
D)1.93.

Question

Quizplus · Accepted Answer

The Accounts Receivable turnover rate is calculated by dividing total sales by the average Accounts Receivable. Average Accounts Receivable is ($69,000 + $60,000) / 2 = $64,500. Therefore, the turnover rate is $249,000 / $64,500 = 3.86.

Kitty-Lion Company Has a Beginning Accounts Receivable Balance of $69,000