The Opening Balance of Accounts Receivable for George Company Was

Multiple Choice

The opening balance of Accounts Receivable for George Company was $25,000. Net sales (all on account) for the year amounted to $150,000. The Company doesn't offer any cash discount. During the year $130,000 was collected on accounts receivable. Compute accounts receivable turnover ratio for the year.

A) 4.29 times
B) 3.71 times
C) 2.89 times
D) 7.50 times