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5 votes
Skysong, Inc. had net credit sales during the year of $1090600 and cost of goods sold of $604000. The balance in accounts receivable at the beginning of the year was $114000 and at the end of the year was $152000. What was the accounts receivable turnover?

A. 10.20
B. 5.00
C. 8.20
D. 6.90

User Cherylyn
by
8.4k points

1 Answer

5 votes

Answer:

8.2 times

Step-by-step explanation:

The first step is to calculate the average receivable

= $114,000+$152,000/2

= $266,000/2

= $133,000

Therefore the accounts receivables turn over can be calculated as follows

= net sales / average receivable

= $1,090,000/$133,000

= 8.2 times

Hence the account receivable turnover is 8.2 times

User CascadiaJS
by
7.9k points
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