Based on the following data for the current year, what is the accounts receivable turnover? $\begin{array}{ll}
\$ 500,000 & \text { Net sales on account churing year } \
300,000 & \text { Cost of merchandise sold during year } \
45,000 & \text { Accounts receivable, beginning of year } \
35,000 & \text { Accounts receivable, end of year } \
90,000 & \text { Inventory, beginning of year } \
110,000 & \text { Inventory, end of year }
\end{array}$
A) 12.5
B) 11.1
C) 10.0
D) 14.3

Question

Quizplus · Accepted Answer

Accounts receivable turnover = Net sales on account / Average accounts receivableAverage accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2= (45,000 + 35,000) / 2= 40,000Accounts receivable turnover = 500,000 / 40,000= 12.5

Based on the Following Data for the Current Year, What