Allatoona Landing reported net credit sales of $1,250,000 and cost of goods sold of $900,000 for 2012.Its beginning balance of Accounts Receivable was $175,000.The accounts receivable balance decreased by $25,000 during 2012.Rounded to two decimal places,what is the company's accounts receivable turnover rate for 2012?

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The accounts receivable turnover rate is calculated as net credit sales divided by the average accounts receivable. The average accounts receivable is ($175,000 + $150,000) / 2 = $162,500. The turnover rate is $1,250,000 / $162,500 = 7.69.

Allatoona Landing Reported Net Credit Sales of $1,250,000 and Cost