The financial statements of the Tyler Company report net sales of $300,000 and accounts receivable of $50,000 and $10,000 at the beginning of the year and end of year, respectively. What is the accounts receivable turnover for the Tyler Company?

Accepted Solution

Answer:the accounts receivable turnover for the Tyler Company is 10Step-by-step explanation:The company report :net sales = $300,000account receivable  = $50,000 and $10,000to find the accounts receivable turnover, use the following formula:accounts receivable turnover = net sales : average account receivableFirst, we need to calculate the average account receivable of  the companyaverage accounts receivable = ($50,000+$10,000) : 2                                               = $60,000 : 2                                               = $30,000Then, substitute net sales into the formulaaccounts receivable turnover = $300,000 : $30,000                                               = 10