ABC's net accounts receivable were $1,000 at December 31,2013 and $1,200 at December 31,2014.Net cash sales for 2014 were $400.The accounts receivable turnover for 2014 was 5.0.What were ABC's total net sales for 2014?

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The accounts receivable turnover ratio is calculated by dividing net credit sales by average accounts receivable. The average accounts receivable is calculated by adding the beginning and ending accounts receivable and dividing by 2. In this case, the average accounts receivable is ($1,000 + $1,200) / 2 = $1,100. The accounts receivable turnover ratio is 5.0, so net credit sales must be $1,100 * 5.0 = $5,500. Total net sales are net credit sales plus net cash sales, so total net sales are $5,500 + $400 = $5,900.

ABC's Net Accounts Receivable Were $1,000 at December 31,2013 and $1,200