Logan Sales provides the following information: Net credit sales: $ 750 comma 000 Beginning net accounts receivable: $ 45 comma 000 Ending net accounts receivable: $ 24 comma 000 Calculate the accounts receivable turnover ratio. (Round your answer to the nearest whole number.)

Accounts receivables turnover ratio = 21.74 times

Explanation:

The accounts receivables turnover can be calculated by dividing the net of credit sales by the average of the accounts receivables for the year. The formula for accounts receivables turover can be written as,

Accounts Receivables turnover = Net credit sales / Average accounts receivables

Where, Average accounts receivables = (Opening Accounts receivables + Closing Accounts receivables) / 2

So, Accounts receivables turnover = 750000 / [ (45000 + 24000) / 2] = 21.739 times