End zone outfitters had accounts receivable of $100,000 at 1/1/17. during 2017the only transactions affecting accounts receivable were sales of $1,200,000 and cash collections of $1,080,000. what would be the accounts receivable turnover?

The accounts receivable turnover ratio is 7.5 times.

Since the question states that "the only transactions affecting accounts receivable were sales of $1,200,000 and cash collections of $1,080,000." , we can infer that the company's credit sales were $1,200,000. We also know that the company collected $1,080,000.

Hence ending accounts receivables will be

Next we calculate the average accounts receivable (A/R) as:

Substituting the values we get,

Finally we calculate Accounts receivable turnover as: