Evaluate collection of accounts receivable.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.

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