Answer:
The company's accounts receivable turnover was closest to 10.83 times
Explanation:
The accounts receivable turnover is an efficiency ratio that measures how many times a company can collect its receivables or money owed by clients during the year.
Accounts receivable turnover is calculated by following formula:
Accounts Receivable Turnover = Net Credit Sales /Average Accounts Receivable
In there:
Average Accounts Receivable = (The beginning accounts receivable of the period balance + The ending accounts receivable of the period balance)/2
In Fraser Company:
Average Accounts Receivable = ($10,000 + $14,000)/2 = $12,000
Accounts Receivable Turnover = $130,000/$12,000 = 10.83 times
