Chapter 5, Problem 21RQ

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

To describe: The way in which accounts receivable turnover ratio is measured, what does it indicates, and discuss whether higher or lower receivables turnover ratio is preferable.