13 Quiz Question 10 (of 10) value: 1.50 points MC Qu.81 During the current accou

Question

13 Quiz Question 10 (of 10) value: 1.50 points MC Qu.81 During the current accounting period,... During the current accounting period, revenue from credit sales is $711,000. The accounts receivable balance is $51,880 at the beginning of the period and $56,200 at the end of the perlod. Which of the following statements is correct? O On average, it takes 13.2 days to collect payment from credit customers O The receivables turnover ratio is 13.2. O The receivables turnover ratio is 278. O On average, the company sells its inventory every 27.84 days References MC Qu.81 During the current accounting period, Multiple Choice F5 FT F2

Explanation / Answer

Receivables turnover ratio = 711000/(51880+56200)/2= 13.2 Option 2 is correct

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