A. Accounts receivable turnover is calculated as annual credit sales divided by the average accounts receivable. Therefore, this number will decrease if there is a decrease in credit sales or an increase in the average receivables. A decrease in credit sales at the end of the period will decrease both the credit sales and the receivables balance at the end of the year.

B. Accounts receivable turnover is calculated as annual credit sales divided by the average accounts receivable. Therefore, this number will decrease if there is a decrease in credit sales or an increase in the average receivables. Under the allowance for doubtful accounts method, the writing off of a receivable will not effect the accounts receivable turnover, because the net average accounts receivable is used in the accounts receivable turnover ratio (i.e., net of the allowance for doubtful accounts).

C. Accounts receivable turnover is calculated as annual credit sales divided by the average accounts receivable. Therefore, this number will decrease if there is a decrease in credit sales or an increase in the average receivables. An increase in cash sales by itself will not effect the accounts receivable turnover number.

D. Accounts receivable turnover is calculated as annual credit sales divided by the average accounts receivable. Therefore, this number will decrease if there is a decrease in credit sales or an increase in the average receivables. If the company lengthens the period for cash discounts, more companies will take longer to pay their bills, which will increase the average receivables. This will, in turn, decrease the accounts receivable turnover ratio.