1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-3 Accounts Receivable Turnover Ratio

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 7-3 Beginning$50,329.14$1,416.83$48,912.31–= Ending$45,462.79$1,363.88$44,098.91–= Total Accounts Receivable Allowance for Uncollectible Accounts Book Value of Accounts Receivable –= CALCULATING THE ACCOUNTS RECEIVABLE TURNOVER RATIO page 211 Compute the beginning and ending book value.1

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 7-3 ($48,912.31$44,098.91)$46,505.61 +=  2 Beginning Book Value of Accounts Receivable Ending Book Value of Accounts Receivable Average Book Value of Accounts Receivable +=  2 CALCULATING THE ACCOUNTS RECEIVABLE TURNOVER RATIO page 211 Compute the average book value. 2

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 7-3 $330,312.85$46,505.617.1 times  = Net Sales on Account Average Book Value of Accounts Receivable Accounts Receivable Turnover Ratio  = CALCULATING THE ACCOUNTS RECEIVABLE TURNOVER RATIO page 211 Compute the accounts receivable turnover. 3

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 7-3 3657.151  = Days in Year Accounts Receivable Turnover Ratio Average Number of Days for Payment  = CALCULATING THE ACCOUNTS RECEIVABLE TURNOVER RATIO page 211 Compute the average number of days for payment. 4

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 7-3 ANALYZING ACCOUNTS RECEIVABLE TURNOVER RATIOS page 212

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 7-3 TERMS REVIEW accounts receivable turnover ratio book value of accounts receivable page 213