If Randolph Corp. has accounts receivables of $654,803 and net sales of $1,932,349, what is its accounts receivable turnover? Round your final answer to two decimal places.
A) 0.34 times
B) 1.78 times
C) 2.95 times
D) None of the above

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover = Net Sales / Average Accounts Receivable
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
We don't have information about the beginning and ending accounts receivable, so we will use the given accounts receivable balance.
Accounts Receivable Turnover = $1,932,349 / $654,803 = 2.95 times. Therefore, the answer is C.