Question

Sheridan Company had accounts receivable of $116000 at 1/1. The only transactions affecting accounts receivable were sales of $937000 and cash collections of $889000. The accounts receivable turnover is

Answer 1

6.7 times

Step-by-step explanation:

The accounts receivable turnover is calculated below;

= $937,000 ÷ ( $116,000 + $164,000 )

/2

= $937,000 ÷ $140,000

= 6.7 times

Therefore, accounts receivable turnover is 6.7 times.