Bill's Dollar Store had a balance in the Accounts Receivable account of $760,000 at the beginning of the year and a balance of $840,000 at the end of the year. Net credit sales during the year amounted to $6,880,000. The accounts receivable turnover was

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The accounts receivable turnover is calculated as Net Credit Sales divided by Average Accounts Receivable. Average Accounts Receivable = ($760,000 + $840,000) / 2 = $800,000. Turnover = $6,880,000 / $800,000 = 8.6 times.

Bill's Dollar Store Had a Balance in the Accounts Receivable