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ale4655 [162]
3 years ago
14

The accounts receivable turnover is computed as __________ divided by __________.sales; accounts receivablesales; average accoun

ts receivablesales; net incomeaccounts receivable; net income.
Business
1 answer:
mixer [17]3 years ago
3 0

Answer:

Sales; average accounts receivable

Explanation:

The formula to compute the account receivables turnover ratio is shown  below:

Accounts receivable turnover ratio  = Credit sales ÷ average accounts receivable

where,  

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

It shows the relationship between the net credit sales and average accounts receivable

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