The following data are taken from the fi nancial statements of Rainsberger Company. 2015 2014 Accounts receivable (net), end of year $ 550,000 $ 520,000 Net sales on account 3,960,000 3,100,000 Terms for all sales are 1/10, n/60.

(a) Compute for each year

(1) the accounts receivable turnover and

(2) the average collection period. At the end of 2013, accounts receivable (net) was $480,000.

(b) What conclusions about the management of accounts receivable can be drawn from these data?