If a Company's Accounts Receivable Turnover Ratio Is 8

question 36

Multiple Choice

If a company's accounts receivable turnover ratio is 8.0 times, cost of goods sold is $360,000, and sales revenue is $480,000, the average accounts receivable balance must have been

• A) $60,000
• B) $80,000
• C) $120,000
• D) $160,000