Allatoona Landing reported net credit sales of $1,250,000 and cost of goods sold of $900,000 for Year 1.Its beginning balance of accounts receivable was $175,000.The accounts receivable balance decreased by $25,000 during Year 1.Rounded to two decimal places,what is the company's accounts receivable turnover rate for Year 1?

Question

Quizplus · Accepted Answer

$1,250,000 (Net credit sales)/ [$175,000 (Beginning accounts receivable balance)+ $150,000 (Ending accounts receivable balance)/ 2] = 7.69

Allatoona Landing Reported Net Credit Sales of $1,250,000 and Cost