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The following data are taken from the financial statements of Ovation Industries, Inc. At the end of the preceding year, Ovation Industries added a 2%
The following data are taken from the financial statements of Ovation Industries, Inc. At the end of the preceding year, Ovation Industries added a 2% discount if paid within 10 days (2/10) to their credit existing terms of Net/60 days. Current Year Preceding Year Accounts receivable, end of the year $48,219 $52,603 Net sales $320,000 $300,000 Determine the Average Collection Period for each year. What conclusion can be drawn from this data concerning accounts receivable and credit policy
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