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15 April, 04:41

Logan Sales provides the following information: Net credit sales: $790,000 Beginning net accounts receivable: $43,000 Ending net accounts receivable: $22,000 Calculate the accounts receivable turnover ratio. (Round your answer to the nearest whole number.)

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  1. 15 April, 05:43
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    24 times

    Explanation:

    The formula to compute the accounts receivable turnover ratio is shown below:

    Accounts receivable turnover ratio = Credit sales : average accounts receivable

    where,

    Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) : 2

    = ($43,000 + $22,000) : 2

    = $32,500

    And, the net credit sale is $790,000

    Now put these values to the above formula

    So, the answer would be equal to

    = $790,000 : $32,500

    = 24 times
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