Based on the following data for the current year, determine the accounts receivable turnover? $\begin{array}{ll}
\$ 500,000 & \text { Net sales on account during the year } \
300,000 & \text { Cost of merchandise sold during the yeat } \
45,000 & \text { Accounts receivable, be ginning of year } \
35,000 & \text { Accounts receivable, end of year } \
90,000 & \text { Inventory, be ginning of year } \
110,000 & \text { Inventory, end of year }
\end{array}$

A) 12.5
B) 14.3
C) 11.1
D) 7.5

Question

Based on the following data for the current year, determine the accounts receivable turnover? $\begin{array}{ll}
\$ 500,000 & \text { Net sales on account during the year } \
300,000 & \text { Cost of merchandise sold during the yeat } \
45,000 & \text { Accounts receivable, be ginning of year } \
35,000 & \text { Accounts receivable, end of year } \
90,000 & \text { Inventory, be ginning of year } \
110,000 & \text { Inventory, end of year }
\end{array}$

A) 12.5
B) 14.3
C) 11.1
D) 7.5

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as Net Sales on Account divided by Average Accounts Receivable. Average Accounts Receivable = (45,000 + 35,000) / 2 = 40,000. Turnover = 500,000 / 40,000 = 12.5.

Based on the Following Data for the Current Year, Determine