Gold Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $880,000 at the end of the year. Net credit sales during the year amounted to $7,650,000. The receivables turnover ratio was

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The receivables turnover ratio is calculated by dividing net credit sales by the average accounts receivable balance. The average accounts receivable balance is calculated by adding the beginning and ending balances and dividing by 2. In this case, the average accounts receivable balance is ($820,000 + $880,000) / 2 = $850,000. The receivables turnover ratio is $7,650,000 / $850,000 = 9.0 times.

Gold Clothing Store Had a Balance in the Accounts Receivable