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Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Solve these accounting question

Transcribed Image Text:Benson Company shows the following data on its 2014 financial statements:
Accounts receivable, January 1
$720,000
Accounts receivable, December 31
$960,000
Merchandise inventory, January 1
$900,000
Merchandise inventory, December 31 $1,020,000
Gross sales
$4,800,000
Sales returns and allowances
$180,000
Net sales
$4,620,000
Cost of goods sold
$3,360,000
Income before interest and taxes
$720,000
Interest on bonds
$192,000
Net income
$384,000
The accounts receivable turnover is:
a. 5.5 times per year.
b. $840,000; Accounts receivable turnover: $4,620,000/$840,000 = 5.5.
c. 5 times per year.
d. 6.667 times per year.
e. 5.714 times per year.
Expert Solution
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