Last year, Amber Company's net sales was $800,000.The beginning accounts receivable balance was $20,000, and the ending accounts receivable balance was $30,000.The company's accounts receivable turnover ratio was closest to:
A) 32.
B) 11.
C) 24.
D) 46.

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 = $800,000 / [($20,000 + $30,000) / 2]
= 32

Last Year, Amber Company's Net Sales Was $800,000