This table (pictured), shows that Blair Supply had an end-of-year accounts receivable balance of $300,035. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers.

a. Use the year-end total to evaluate the firms collection system.

b. If 70% of the firms sales occur between July and December, would this affect the validity of your conclusion in part a.? Explain.

a. The average collection period is days. (Round to two decimal places.) Month of Amounts receivable origin July $3,905 August 1,975 September 33,990 October 15,120 November 52,010 December 193,035 Year-end accounts receivable $300,035