A company had total sales of $600,000,net sales of $550,000,and an average accounts receivable of $95,000.Its accounts receivable turnover equals:

Name: A company had total sales of $600,000,net sales of $550,000,and an average accounts receivable of $95,000.Its accounts receivable turnover equals:
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing net sales by average accounts receivable. In this case, the accounts receivable turnover ratio is $550,000 / $95,000 = 6.1.

A Company Had Total Sales of $600,000,net Sales of $550,000,and