Question

The financial statements of the imagine company report net sales of $1,000,000 and accounts receivable of $700,000 and $300,000 at the beginning of the year and end of year, respectively. what is the accounts receivable turnover for the imagine company?

Answer 1

The answer is 2 times.
 
Accounts recievable turnover ratio = net sales / average accounts recievable

=1,000,000 ÷ (700,000+300,000 ÷ 2)