Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:
A) 5.00
B) 13.00
C) 10.00
D) 8.13

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover = Sales on Account / ((Beginning Accounts Receivable + Ending Accounts Receivable)/2)

= $130,000 / (($10,000 + $16,000)/2)

= $130,000 / ($13,000)

= 10.00

Frantic Corporation Had $130,000 in Sales on Account Last Year