Why is the truth lending act good for credit consumers
2 answers:
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Answer:
Accounts Receivable Turnover = 8.0 Times
Explanation:
given data
net credit sales = $1,200,000
cost of goods sold = $720,000
accounts receivable beginning = $120,000
accounts receivable ending = $180,000
to find out
What was the accounts receivable turnover
solution
we get here accounts Receivable Turnover that is express as
Accounts Receivable Turnover = Net Credit Sales ÷ Average Accounts Receivable .................1
here Average Accounts Receivable is = Opening Accounts Receivable + Closing Accounts Receivable .................2
Average Accounts Receivable =
Average Accounts Receivable = $1,50,000
so put value in equation 1
Accounts Receivable Turnover =
Accounts Receivable Turnover = 8.0 Times