The financial statements of the Tyler Company report net sales of $300,000 and accounts receivable of $50,000 and $10,000 at the beginning of the year and end of year, respectively. What is the accounts receivable turnover for the Tyler Company?

the accounts receivable turnover for the Tyler Company is 10

Step-by-step explanation:

The company report:

net sales = $300,000

account receivable = $50,000 and $10,000

to find the accounts receivable turnover, use the following formula:

accounts receivable turnover = net sales : average account receivable

First, we need to calculate the average account receivable of the company

average accounts receivable = ($50,000+$10,000) : 2

= $60,000 : 2

= $30,000

Then, substitute net sales into the formula

accounts receivable turnover = $300,000 : $30,000

= 10