The following data are taken from the financial statements of Colby Company.

Compute for each year 

(a) The accounts receivable turnover 

(b) The average collection period. What conclusions about the management of accounts receivable can be drawn from these data? At the end of 2020, accounts receivable (net) was $520,000.

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Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2022 $ 550,000 4,300,000 2021 $540,000 4,000,000