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Question
The following data are taken from the financial statements of Colby Company.
2020
2019
Accounts receivable (net), end of year
$530,000
$480,000Net sales on account
4,090,500
3,085,500Terms for all sales are 1/10, n/45
Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.)
Compute for each year the average collection period. At the end of 2018, accounts receivable was $455,000. (Use 365 days for calculation. Round answers to 1 decimal)
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