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

a. Calculate for each year (1) the receivables turnover and (2) the collection period. At the end of 2019, accounts receivable was $480,000.

b. What conclusions about the management of accounts receivable can be drawn?

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2021 2020 Accounts receivable, end of year Net credit sales Terms for all sales are 1/10, n/60. $ 550,000 3,960,000 $ 520,000 3,100,000