Union Corporation reported net credit sales of $2,500,000 and cost of goods sold of $1,800,000 for 2012. Its beginning balance of accounts receivable was $350,000. The accounts receivable balance decreased by $50,000 during 2012. Rounded to two decimal places, what is Union's accounts receivable turnover ratio for 2012?

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The accounts receivable turnover ratio is calculated as net credit sales divided by the average accounts receivable. The average accounts receivable is ($350,000 + $300,000) / 2 = $325,000. The turnover ratio is $2,500,000 / $325,000 = 7.69.

Union Corporation Reported Net Credit Sales of $2,500,000 and Cost