Excerpts from Tigner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,230 and the cost of goods sold was $820.
-The accounts receivable turnover for Year 2 is closest to:
A)7.10
B)0.91
C)8.79
D)1.10

Question

Excerpts from Tigner Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,230 and the cost of goods sold was $820.
-The accounts receivable turnover for Year 2 is closest to:
A)7.10 
B)0.91 
C)8.79 
D)1.10

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account F1F1F1S1F1F1F10 Average accounts receivable balance
= $1,230 F1F1F1S1F1F1F10 $140* = 8.79
*Average accounts receivable balance = ($150 + $130)F1F1F1S1F1F1F10 2 = $140

Excerpts from Tigner Corporation's Most Recent Balance Sheet Appear Below