Brief Exercise 18-11 b (Essay) The following data are taken from the financial statements of Colby...

Brief Exercise 18-11 b (Essay)

The following data are taken from the financial statements of Colby Company.

	2020	2018
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

	2020		2019
Accounts Receivable turnover	7.9	times	7.5	times
Average collection period	46.2	days	48.7	days

(b)

What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.

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Expert Solution

ekkarill92 answered 6 months ago

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