Jensen Company’s general ledger included the following selected accounts (in thousands) at December 31, 2021:

Accounts payable ..................................................... $1,077.3
Accounts receivable ...................................................... 590.4
Accumulated depreciation—equipment .................... 858.7
Allowance for doubtful accounts .................................. 35.4
Bad debt expense ........................................................... 91.3
Cash ................................................................................ 395.6
Cost of goods sold ........................................................ 660.4
Equipment .................................................................. 1,732.8
Interest revenue ............................................................. 19.7
Merchandise inventory ................................................ 630.9
Notes receivable—due in 2022 ..................................... 96.0
Notes receivable—due in 2025 ................................... 191.1
Prepaid expenses ............................................................ 20.1
Sales ............................................................................ 4,565.5
Sales discounts ............................................................... 31.3
Short-term investments .............................................. 194.9
Supplies ........................................................................... 21.7
Unearned revenue ......................................................... 56.3

Additional information:

1. On December 31, 2020, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand.

2. The receivables turnover was 8.3 the previous year.

Instructions

a. Prepare the assets section of the balance sheet.

b. Calculate the receivables turnover and average collection period. Compare these results with the previous year’s results and comment on any trends.

What other information should Jensen consider when analyzing its receivables turnover and average collection period?