Essay
Accounts receivable turnover rate
During 2018,Larsen Company's accounts receivable averaged $750,000.Larsen's 2018 income statement reported net sales of $6,780,000,uncollectible accounts expense of $160,000,and net income of $768,000.(Assume 365 days in a year. )
Using the information,compute the following for Larsen Company:
(a)Accounts receivable turnover: (Round to the nearest two decimals. )
(b)Average number of days to collect accounts receivable
(Round to nearest day,if necessary): (Round to the nearest %. )
Correct Answer:
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(a)9.04 times ($6,78...View Answer
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