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Dome Metals has credit sales of $108,000 yearly with credit terms of net 60 days, which is also the average collection period. Dome does not
Dome Metals has credit sales of $108,000 yearly with credit terms of net 60 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 60 days to pay.
a. What is the average receivables balance? (Use a 360-day year.)
b. What is the receivables turnover? (Use a 360-day year.)
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