Question

A company had total sales of $980,000, net sales of $955,800 and an average accounts receivable of $82,500. Its accounts receivable turnover equals:_____.

Answer 1

Answer:

Accounts receivable turnover = 11.58

Explanation:

The total sales of the company = $980000

Net sales of the company = $955800

Average account receivable =  $82500

We have total sales, net sales, and average accounts receivable. Here, we are required to find the account turnover.

Use the below formula to find the account turnover:

Accounts receivable turnover = Net sales  / average accounts receivable

Now insert the values:

Accounts receivable turnover = 955800 / 82500 = 11.58