Question

A company has net sales of $1,246,200 and average accounts receivable, net of $402,000. what is its accounts receivable turnover for the period?

Answer 1

A company has net sales of $1,246,200 and average accounts receivable, net of $402,000. Its accounts receivable turnover for the period will be calculated in the following way =

Accounts Receivable Turnover = Net Sales/Average Accounts Receivable Accounts Receivable Turnover

$1,246,200/$402,000 = 3.10

What is  accounts receivable turnover ?

The debtor's turnover ratio, sometimes referred to as the accounts receivable turnover ratio, is an efficiency ratio that assesses how effectively a business uses its assets and, consequently, how effectively it collects revenue.

The average number of times a company collects its accounts receivable during a specific time period is measured by the accounts receivable turnover ratio.

To learn more about accounts receivable turnover ratio click here ;

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