A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period?

A) 0.33
B) 5.00
C) 20.0
D) 73.0
E) 3.0

Question

A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period?A) 0.33B) 5.00C) 20.0D) 73.0E) 3.0

Robert Manyoni · Accepted Answer

Final Answer : E, Explanation :  Accounts Receivable Turnover = Net Sales / Average Accounts Receivable= $1,200,000 / $400,000= 3.0Therefore, the answer is E) 3.0.

A company has net sales of $1,200,000 and average accounts receivable of $400,000.What is its accounts receivable turnover for the period?

A) 0.33
B) 5.00
C) 20.0
D) 73.0
E) 3.0

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