Mr. sparks, the owner of school supplies, inc., is interested in keeping control over accounts receivable. he understands that accounts receivable turnover will give a good indication of how well receivables are being managed. school supplies, inc. does seventy percent of its business during june, july and august. the terms of sale are 2/10, n/60. net sales for the year ended december 31, 2019, and receivables balances are:
net sales = $1,500,000;
receivables at january 1, 2019 = $80,000;
receivables at december 31, 2019 = $70,000.
1. what is the average accounts receivable turnover calculated from the data above?
answers:
a. 20.0 times
b. 25.0 times
c. 22.7 times
d. 18.75 times