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

(a) Calculate for each year (1) the receivables turn over and (2) the collection period. At the end of 2015, accounts receivable was $480,000.
(b) What conclusions about the management of accounts receivable can be drawn?

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2017 $ 550,000 3,960,000 2016 Accounts receivable, end of year Net credit sales Terms for all sales are 1/10, n/60. 520,000 3,100,000