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    ROD18's Avatar
    ROD18 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 1, 2011, 07:31 PM
    Accounting
    If a Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. The company accounts receivable turnover rate is
    A. 3.846.

    B. 2.000.

    C. 4.000.

    D. 4.167.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Dec 2, 2011, 02:47 PM
    Three of the four are potentially correct, depending on whether you use beginning, ending, or average AR in the ratio. Almost always, average AR is the way to go. Your book will tell which one to use.

    You know the drill: make an attempt at it; there's no way to tell where you're having trouble if you post nothing but the question itself.
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