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

2014 2013 Accounts receivable (net), end of year $ 550,000 $ 540,000 Net sales on account 4,300,000 4,000,000 Terms for all sales are 1/10, n/45 Compute for each year

(a) the accounts receivable turnover and

(b) the average collection period. What conclusions about the management of accounts receivable can be drawn from these data? At the end of 2012, accounts receivable was $520,000.

AppendixLO1