Fraser Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $14,000.The company's accounts receivable turnover was closest to:
A)5.42
B)13.00
C)9.29
D)10.83

Question

Quizplus · Accepted Answer

Accounts receivable turnover = Sales on account F1F1F1S1F1F1F10 Average accounts receivable balance*
= $130,000 F1F1F1S1F1F1F10 $12,000 = 10.83
*Average accounts receivable balance = ($10,000 + $14,000)F1F1F1S1F1F1F10 2 = $12,000

Fraser Company Had $130,000 in Sales on Account Last Year