Logan Sales provides the following information: Net credit sales: $790,000
Beginning net accounts receivable: $43,000
Ending net accounts receivable: $20,000
Calculate the accounts receivable turnover ratio. (Round your answer to the nearest whole number.)

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

Average accounts receivable = (Beginning net accounts receivable + Ending net accounts receivable) / 2
= ($43,000 + $20,000) / 2
= $31,500

Therefore, accounts receivable turnover ratio = $790,000 / $31,500 = 25 times (rounded to the nearest whole number). Hence, option B is the correct answer.

Logan Sales Provides the Following Information: Net Credit Sales: $790,000