Last year, Manganese Company's net sales was $420,000.The beginning accounts receivable balance was $25,000 and the ending accounts receivable balance was $35,000.The company's accounts receivable turnover ratio was closest to:
A) 10.
B) 28.
C) 14.
D) 31.

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover Ratio = Net Sales / Average Accounts Receivable
Average Accounts Receivable = [(Beginning Receivables + Ending Receivables) / 2]
Accounts receivable turnover ratio = $420,000 / [($25,000 + $35,000) / 2]
= 14

Last Year, Manganese Company's Net Sales Was $420,000