The following data are taken from the financial statements of Amazing Technology Inc. Terms of all sales are 2/10, n/30.

a. For Years 2 and 3, determine
(1) The accounts receivable turnover
(2) The number of 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 creditpolicies?

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Year 3 Year 2 Year 1 Accounts receivable, end of year Net sales on account 350,000 290,000 $250,000 4,224,000 3,456,000