Question

A company had total sales of $610,000, net sales of $566,400, and an average accounts receivable of $96,000. Its accounts receivable turnover equals:

Answer 1

5.9

Step-by-step explanation:

Calculation for It's accounts receivable turnover using this formula

Accounts Receivable Turnover = Net Sales amount /Average Accounts Receivable amount

Let plug in the formula

Accounts Receivable Turnover =$566,400/$96,000

Accounts Receivable Turnover = 5.9

Therefore Its accounts receivable turnover equals: 5.9