Wal-Mart Stores, Inc., is the largest retailer in the United States. Recently, Wal-Mart reported these figures in millions of dollars:

The Wal-Mart financial statements include no uncollectible-account expense or allowance for uncollectibles.
\section*{Required}
1. Compute Wal-Mart's average collection period on receivables during 19X2.
2. How can Wal-Mart have \(\$ 419\) million of receivables at January \(31,19 \mathrm{X} 2\), and no significant allowance for uncollectibles?
\section*{CHALLENGE EXERCISE}

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19X2 19X1 Net sales $43,887 $32,602 Receivables at end of year 419 305