Exhibit 4-1
Given the following information for Blue Bell Company for last year:
-Refer to Exhibit 4-1. Blue Bell's accounts receivable turnover for the year was
A) 2.2 times
B) 26.0 times
C) 27.4 times
D) 28.9 times

Question

Exhibit 4-1
Given the following information for Blue Bell Company for last year: 
-Refer to Exhibit 4-1. Blue Bell's accounts receivable turnover for the year was
A) 2.2 times 
B) 26.0 times 
C) 27.4 times 
D) 28.9 times

Quizplus · Accepted Answer

The accounts receivable turnover is calculated by dividing net credit sales by the average accounts receivable. The correct turnover rate of 27.4 times suggests that Blue Bell's net credit sales divided by its average accounts receivable equals 27.4.

Exhibit 4-1 Given the Following Information for Blue Bell Company for Last