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South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales for the year are $769,346. The balance at the end of 2017 was $325,300. What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)?

Respuesta :

Answer: 2.25 times

Explanation:

The accounts receivable turnover will be calculated by dividing the net credits by the average accounts receivable.

To solve the question, we need to calculate the average accounts receivable. This will be:

= ($357470 + $325300)/2

= $682770/2

= $341385

Account receivable turnover is calculated as:

= Net credit/Average accounts receivable

= $769,346/$341,385

= 2.25 times

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