Gallego & Co. reported sales of $515,000 beginning net Accounts Receivable of $219,000 and ending net Accounts Receivable of $221,000. Gallego & Co.'s Accounts Receivable turnover is:

Question

Quizplus · Accepted Answer

Accounts Receivable turnover = Sales / Average Accounts Receivable
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Average Accounts Receivable = ($219,000 + $221,000) / 2 = $220,000

Accounts Receivable turnover = $515,000 / $220,000 = 2.34
Therefore, the answer is (B) 2.34.