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Confection Bakery Supply began the year with an Accounts Receivable balance of $25,000. Net sales (all on account) for the year amounted to $100,000 and no cash discount was offered. During the year $70,000 was collected on accounts receivable. What is the accounts receivable turnover ratio

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eooyibo123

Answer:

Accounts receivable turnover= 2.105

Explanation:

Accounts receivable turnover ratio is a measure of how well a business is giving credit and recovering debt. It is the number of times a business recovers it's account recievables in a year. Shows how effectively a business uses its assets.

Average accounts receivable = (25,000+70,000)/2

Average account receivable=

$47,500

Account receivable turnover= Net credit sales/Average accounts receivable

Accounts receivable turnover= 100,000/47,500

Accounts receivable turnover= 2.105

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