Bledel Company had accounts receivable of \($100,000\) on January 1, 2008. The only transactions that affected accounts receivable during 2008 were net credit sales of \($1,000,000,\) cash collections of \($900,000,\) and accounts written off of \($30,000.\)

Instructions

(a) Compute the ending balance of accounts receivable.

(b) Compute the accounts receivable turnover ratio for 2008.

(c) Compute the average collection period in days.