Given the following information, compute Accounts Receivable Turnover: $\begin{array}{|ll|ll|}
\hline \text { Gross Sales: } & \$ 150,000 & \text { Accounts Receivable, Beginning of Year: } &\$ 18,000 \
\hline \text { Net Sales: } & \$ 135,000 & \text { Accounts Receivable, End of Year: }& \$ 22,000 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The Accounts Receivable Turnover is calculated as Net Sales divided by the average Accounts Receivable. Average Accounts Receivable = (\$18,000 + \$22,000) / 2 = \$20,000. Turnover = \$135,000 / \$20,000 = 6.75.

Given the Following Information, Compute Accounts Receivable Turnover A) 675 B) 7

Given the Following Information, Compute Accounts Receivable Turnover A) 675
B) 7