Question

A company had total sales of $700,000, net sales of $696,800, and an average accounts receivable of $104,000. Its accounts receivable turnover equals:

Answer 1

account receivable turnover= 6.7

Step-by-step explanation:

Giving the following information:

Net sales= $696,800

Average accounts receivable= $104,000

To calculate the account receivable turnover, we need to use the following formula:

account receivable turnover= net sales / Average accounts receivable

account receivable turnover= 696,800 / 104,000

account receivable turnover= 6.7