Question

Net sales are $525,000, beginning accounts receivable are $15,000 and ending accounts receivable are $20,000. The accounts receivable turnover is _____ times.

Answer 1

Answer:

the account receivable turnover is 15 times

Explanation:

We have given net sales = $525000

Beginning account receivable = $15000

And ending account receivable = $20000

So average account receivable $=\frac{15000+20000}{2}=35000$ $

We have to find the receivable turn over

Receivable turnover is the ratio of net sales to the average average account receivables

So turnover $=\frac{525000}{35000}=15$ times

So the account receivable turnover is 15 times