What is the meaning of accounts receivable turnover and the number of days' sales are in receivables? What are those used for? Based on the following data and using a 365-day year, compute (a) the accounts receivable turnover and (b) the number of days sales in receivables. The industry average is a collection period of once every 20 days, and the number of days' sales in receivables averages 19. (c) Comment on this situation. 12/31/05 Accounts Receivable, net $90,000 12/31/06 Accounts receivable, net $70,000 For the year ended 12/31/05, net credit sales $1,250,000 For the year ended 12/31/06, net credit sales $1,600,000