Question

A company had total sales of $840,000, net sales of $821,400, and an average accounts receivable of $111,000. Its accounts receivable turnover equals:

Answer 1

7.4

Step-by-step explanation:

accounts receivable turnover is ratio of total net sales and average account receivable.

accounts receivable turnover = total net sales/ average account receivable

Given

net sales = $821,400,

average accounts receivable = $111,000

accounts receivable turnover =$821,400/111,000 = 7.4 Answer