Chuck Company has a beginning Accounts Receivable balance of $85,000 and an ending balance of $50,000.Net credit sales are $300,000.The company's accounts receivable turnover ratio is:
A)4)444.
B)4)167.
C)4)000.
D)None of the above

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net credit sales / Average accounts receivableAverage accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2= ($85,000 + $50,000) / 2= $67,500Accounts receivable turnover ratio = $300,000 / $67,500= 4.444

Chuck Company Has a Beginning Accounts Receivable Balance of $85,000