Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Parker Hardware Store had net credit sales of $8,000,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was:______.
a. 7.7 times.
b. 4.6 times.
c. 11.4 times.
d. 12.3 times.

Sagot :

Parrain

Answer: d. 12.3 times

Explanation:

Receivables turnover = Net credit sales / Average accounts receivables

Average account receivables = (600,000 + 700,000) / 2

= $650,000

Receivables turnover = 8,000,000 / 650,000

= 12.3 times

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.