A company has net sales of $2,475,000 and average accounts receivable, net of $450,000. What is its accounts receivable turnover for the period?Multiple Choice83.000.4510.0027.505.50
Question
A company has net sales of 450,000. What is its accounts receivable turnover for the period?Multiple Choice83.000.4510.0027.505.50
Solution
The accounts receivable turnover is calculated by dividing the net credit sales by the average accounts receivable during the same period.
In this case, the net sales are 450,000.
So, the accounts receivable turnover would be 450,000 = 5.50
Therefore, the accounts receivable turnover for the period is 5.50.
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