Net credit sales for Torro Corporation for 2017 were $600,000.Net accounts receivable at the beginning of the year were $125,000 and were $150,000 at the end of the year.What was the accounts receivable turnover?

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2
= ($125,000 + $150,000) / 2
= $137,500
Accounts receivable turnover ratio = $600,000 / $137,500
= 4.36 (rounded to two decimal places)

Net Credit Sales for Torro Corporation for 2017 Were $600,000