Question

​Piper, Inc. reported sales of $ 348 comma 000.00​; beginning net Accounts Receivable of $ 89 comma 000.00 and ending net Accounts Receivable of $ 109 comma 000.00. What is Piper​ Inc.'s Accounts Receivable​ turnover?

Answer 1

3.51

Step-by-step explanation:

Given that,

Sales = $348,000

Beginning net Accounts Receivable = $ 89,000

Ending net Accounts Receivable = $109,000

Average net accounts receivables:

= (Beginning net Accounts Receivable + Ending net Accounts Receivable) ÷ 2

= ($ 89,000 + $109,000) ÷ 2

= $198,000 ÷ 2

= $99,000

Therefore, the Piper​ Inc.'s Accounts Receivable​ turnover is as follows:

= Sales ÷ Average net accounts receivables

= $348,000 ÷ $99,000

= 3.51