The following data are taken from the financial statements of Colby Company. Compute for each year (a)
Question:
The following data are taken from the financial statements of Colby Company.
Compute for each year
(a) The accounts receivable turnover
(b) The average collection period. What conclusions about the management of accounts receivable can be drawn from these data? At the end of 2020, accounts receivable was $520,000.
Transcribed Image Text:
2022 2021 Accounts receivable (net), end of year $ 550,000 $ 540,000 Net sales on account 4,300,000 4,000,000 Terms for all sales are 1/10, n/45
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