If a firm has $400,000 in credit sales and $80,000 in average accounts receivable,accounts receivable turnover is

Name: If a firm has $400,000 in credit sales and $80,000 in average accounts receivable,accounts receivable turnover is
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Question

Quizplus · Accepted Answer

Accounts receivable turnover is calculated by dividing the credit sales by the average accounts receivable. 
Accounts receivable turnover = credit sales / average accounts receivable 
= $400,000 / $80,000 
= 5 
Therefore, the correct option is C) 0)20.

If a Firm Has $400,000 in Credit Sales and $80,000