The accounts receivable turnover ratio is 9 times and option B is the correct answer.
Explanation:
The accounts receivables turnover ratio is a measure to check the efficiency of a company in extending and collecting the credit. The accounts receivable turnover ratio can be calculated as follows,
Accounts receivable Turnover = Net Sales / Average Accounts receivable
Where Average accounts receivable = (Opening balance of Accounts Receivable + Ending balance of Accounts receivable) / 2
Average accounts receivable = (180000 + 120000) / 2 = $150000
The accounts receivable turnover = 1350000 / 150000 = 9.0 times
2 and 5
Explanation:
the answer to the second part is 1, 2, and 4