Carter Company's sales for 2013 were $8,700,000. Its accounts receivable were $720,000 at the beginning of 2013 and $801,000 at the end of the year. The accounts receivable turnover ratio for the year was 12.1.

Question

Quizplus · Accepted Answer

$8,700,000 sales/$801,000 accounts receivable ending balance = 10.9; Ending accounts receivable, not average accounts receivable, is used to calculate accounts receivable turnover.

Carter Company's Sales for 2013 Were $8,700,000