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Burton and Associates, LLCs income statement for the year ended December 31, 2021, included $2,875,069 of sales, all of which were credit sales. Its comparative
Burton and Associates, LLCs income statement for the year ended December 31, 2021, included $2,875,069 of sales, all of which were credit sales. Its comparative balance sheets for December 31, 2020, and December 31, 2021, included $341,067 and $362,213 of accounts receivable, respectively, the aging of which is included below:
Burton and Associates, LLCs comparative balance sheets include no reserve for bad debts at December 31, 2020, or December 31, 2021. Assuming the companys payment terms are 30 days, do the following:
- Calculate accounts receivable turnover for 2021.
- Calculate the average collection period for 2021.
- Comment on the status of the companys accounts receivable at December 31, 2021. Do collections seem to be improving? Explain your answer.
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