A company had net sales of $550,000 and an average accounts receivable of $110,000. Its accounts receivable turnover equals 5.0.
Accounts Receivable Turnover = Net Sales/Average Accounts Receivable
Accounts Receivable Turnover = $550,000/$110,000 = 5.0

Question

Quizplus · Accepted Answer

The accounts receivable turnover formula, Net Sales divided by Average Accounts Receivable, was correctly calculated using the given values, resulting in an accounts receivable turnover of 5.0. Therefore, the answer is A) True.

A Company Had Net Sales of $550,000 and an Average