Allgood Pet Supplies reported net credit sales of $3,200,000 and cost of goods sold of $2,600,000 for 2012.On January 1,Year 1,accounts receivable was $450,000.Amounts owed by customers increased by $50,000 during Year 1.Rounding to two decimal places,what is the company's accounts receivable turnover rate for Year 1?

Question

Quizplus · Accepted Answer

$3,200,000 (Sales)/ [[$450,000 (Jan.1 balance)+ $500,000 (Dec.31 balance)] / 2] = 6.74

Allgood Pet Supplies Reported Net Credit Sales of $3,200,000 and Cost