Powers Company reported net sales of $1,200,000,average Accounts Receivable,net of $78,500,and net income of $51,025.The accounts receivable turnover ratio is:
A)0.65 times.
B)14.3 times.
C)28.6 times.
D)15.3 times.
E)16.3 times.

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net sales / Average accounts receivable, net

= $1,200,000 / $78,500

= 15.3 times.

Therefore, the answer is D.

Powers Company Reported Net Sales of $1,200,000,average Accounts Receivable,net of $78,500,and