Question

​Piper, Inc. reported sales of $ 348000.00​; beginning net Accounts Receivable of $ 89000.00 and ending net Accounts Receivable of $ 109000.00. What is Piper​ Inc.'s Accounts Receivable​ turnover?

Answer 1

Answer:

3.52 times

Explanation:

Given that,

Sales = $348,000

Beginning net Accounts Receivable = $89,000

Ending net Accounts Receivable = $109,000

Average accounts receivable:

= (Beginning net Accounts Receivable + Ending net Accounts Receivable) ÷ 2

= ($89,000 + $109,000) ÷ 2

= $198,000 ÷ 2

= $99,000

Accounts Receivable​ turnover:

= Sales ÷ Average accounts receivable

= $348,000 ÷ $99,000

= 3.52 times