Magneto Company had net credit sales during the year of $1,350,000 and cost of goods sold of $810,000. The balance in accounts receivable at the beginning of the year was $180,000, and the end of the year it was $120,000. What was the accounts receivable turnover?

Account receivable turnover ratio = 9

Explanation:

The account receivable turnover ratio shows how well a business is managing its credit line it extended to its customers.It provides information on how effective a business is in the collection of amounts due from customers in respect of credit sales made.

It is calculated using the  formula below:

Account receivable turnover  =

Net credit sales/ Average account receivable

Average account receivable=

(Receivable balance at the begin. + Receivable balance at the end)/2

We can calculate the account receivable turnover for Magneto Company as follows:

Step 1

calculate the average account receivable

= ($180,000+ $120,000)/2

= $150,000

Step 2

Calculate the account receivable turnover ratio ( ARTR)

ART = $1,350,000/$150,000

      = 9

Account receivable turnover ratio = 9

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent