A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turnover for the period?
A) 5.00
B) 3.0
C) 20.0
D) 73.0
E) 0.33

Question

Quizplus · Accepted Answer

Accounts receivable turnover = net sales / average accounts receivable
= 1,200,000 / 400,000
= 3.0
Therefore, the correct answer is B, the accounts receivable turnover for the period is 3.0.

A Company Has Net Sales of $1,200,000 and Average Accounts