The following data are taken from the financial statements of Rise and Shine Company. Terms of all

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The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30.

Year 3 Year 2 Year 1 Accounts receivable, end of year $ 450,000 $ 375,000 $300,000 Sales 2,640,000 1,957,500

a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days’ sales in receivables. Round to nearest dollar and one decimal place.

b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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Survey Of Accounting

ISBN: 9780357132593

9th Edition

Authors: Carl S. Warren, Amanda Farmer

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Question Posted: Sep 25, 2020 07:21 AM

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The following data are taken from the financial statements of Rise and Shine Company. Terms of all

Question:

Year 3 Year 2 Year 1 Accounts receivable, end of year $ 450,000 $ 375,000 $300,000 Sales 2,640,000 1,957,500

Step by Step Answer:

a 1 2 1 412500 375000 450000 2 2 7233 2640000 365 days 3 337500 300000 375000 2 4 5363 ...View the full answer

Survey Of Accounting

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