# South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales for the year are$769,346. The balance at the end of 2017 was $325,300. What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)? A. 2.02 times B. 2.25 times C. 2.15 times D. 1.13 times FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 #### Solutions Chapter Section FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 9, Problem 12MC Textbook Problem 3 views ## South Rims has an accounts receivable balance at the end of 2018 of$357,470. The net credit sales for the year are $769,346. The balance at the end of 2017 was$325,300. What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)?A. 2.02 timesB. 2.25 timesC. 2.15 timesD. 1.13 times

To determine

Concept introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the net credit sales by the average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

To choose:

The accounts receivable turnover rate.

### Explanation of Solution

The accounts receivable turnover rate is calculated as follows:

 Accounts Receivable Turnover: Net Credit Sales (A) \$ 769,346 Beginning Accoun...

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