A company has an accounts receivable turnover of 10.The average net accounts receivable during the period are $900,000.What is the amount of net credit sales for the period?

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover = Net Credit Sales / Average Net Accounts Receivable
10 = Net Credit Sales / $900,000
Net Credit Sales = 10 * $900,000
Net Credit Sales = $9,000,000

A Company Has an Accounts Receivable Turnover of 10