Question - 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, 20x9, and receivables balances are: Net Sales = $1,500,000; Receivables at January 1, 20x9 = $80,000; Receivables at December 31, 20x9 = $70,000. What is the average accounts receivable turnover calculated from the data above?
20.0 times
25.0 times
22.7 times
18.75 times