The accounts receivable turnover is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period. is only important to internal users of accounting information. can be used to compute the average collection period. is a method of evaluating the solvency of net accounts receivable. A company sells $973000 of accounts receivable to a factor for cash, incurring a 5% service charge. The entry to record the sale should not include a debit to Service Charge Expense for $48650. debit to Interest Expense for $48650. debit to Cash for $924350. credit to Accounts Receivable for $973000