The following account balances are taken from the records of the Faraway Travel Agency:

Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.
Required
1. Compute Faraway€™s accounts receivable turnover ratio for 2010 and 2009.
2. Compute the number of days€™ sales in receivables for 2010 and 2009. Assume 360 days in a year.
3. Comment on the efficiency of Faraway€™s collection efforts over the two-yearperiod.

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2010 $150,000 2010 December 31 2009 $100,000 2009 2008 Accounts receivable Net credit sales $600,000 $540,000