Based on the following data, what is the accounts receivable turnover?Sales on account during year$700,000Cost of goods sold during year270,000Accounts receivable, beginning of year45,000Accounts receivable, end of year35,000Inventory, beginning of year90,000Inventory, end of year110,000
A) 17.5
B) 2.6
C) 20.0
D) 15.5

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as Sales on Account divided by the Average Accounts Receivable. Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2 = (45,000 + 35,000) / 2 = 40,000. Therefore, Accounts Receivable Turnover = 700,000 / 40,000 = 17.5.

Based on the Following Data, What Is the Accounts Receivable