Total revenue 500000 cash sales 40% beginning period A/R 400000 ending period A/R 600000

(A) is the Correct Ans.

Credit Sale:300,000 (500,000 @60%)

Average Receivables =400,000 +600,000 /2

                                        =500,000

A/R Turnover Ratio:300.000 /500,000 *100

                                   =60 %