The following information pertains to Napa Merchandising Company.

Merchandise inventory at end of year: $50,000

Accounts receivable at beginning of year: 54,000

Cash sales made during the year: 27,000

Gross profit on sales: 30,000

Accounts receivable written off during the year: 1,500

Purchases made during the year: 90,000

Accounts receivable collected during the year: 117,000

Merchandise inventory at beginning of year: 54,000

Instructions:

1. Calculate the amount of credit sales made during the year.

2. Calculate the balance of accounts receivable at the end of the year.

3. Compute the following ratios: accounts receivable turnover, and average collection period in days. Assume the allowance for doubtful accounts was $1,000 both at the beginning and end of the year.