Assuming a 365-day year,Bush Industries calculated an average of 47 days to collect its accounts receivable in 2019.During 2018,Bush's accounts receivable turnover rate:

Question

Quizplus · Accepted Answer

To calculate the accounts receivable turnover rate, we divide the total credit sales by the average accounts receivable. We do not have information about credit sales, but we do know that it took 47 days on average to collect the accounts receivable. Since a year has 365 days, we can calculate the accounts receivable turnover rate as 365/47 = approximately 7.77. Therefore, the correct choice is A.

Assuming a 365-Day Year,Bush Industries Calculated an Average of 47