Refer to the following selected financial information from Texas Electronics.

-Compute the company's accounts receivable turnover for Year 2.
A)8.62.
B)8.28.
C)8.94.
D)5.78.
E)7.90.

Question

Refer to the following selected financial information from Texas Electronics.

-Compute the company's accounts receivable turnover for Year 2. 
A)8.62. 
B)8.28. 
C)8.94. 
D)5.78. 
E)7.90.

Quizplus · Accepted Answer

Accounts receivable turnover = Net sales / Average accounts receivable
Average accounts receivable = (beginning accounts receivable + ending accounts receivable) / 2
= ($11,200 + $10,500) / 2
= $10,850
Accounts receivable turnover = $155,900 / $10,850
= 8.28

Refer to the Following Selected Financial Information from Texas Electronics