Accounts receivable turnover rate
During 2015,Larsen Company's accounts receivable averaged $750,000.Larsen's 2015 income statement reported net sales of $6,780,000,uncollectible accounts expense of $160,000,and net income of $768,000.(Assume 365 days in a year.)
Using the information,compute the following for Larsen Company:
(a)Accounts receivable turnover: (Round to the nearest two decimals.)
(b)Average number of days to collect accounts receivable
(Round to nearest day,if necessary): (Round to the nearest %.)

Question

Quizplus · Accepted Answer

The Answer of Accounts receivable turnover rate
During 2015,Larsen Company's accounts receivable averaged $750,000.Larsen's 2015 income statement reported net sales of $6,780,000,uncollectible accounts expense of $160,000,and net income of $768,000.(Assume 365 days in a year.)
Using the information,compute the following for Larsen Company:
(a)Accounts receivable turnover: (Round to the nearest two decimals.)
(b)Average number of days to collect accounts receivable
(Round to nearest day,if necessary): (Round to the nearest %.)

Accounts Receivable Turnover Rate