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

a. Compute for each year (1) the accounts receivable turnover and (2) the average collection period.
At the end of 2018, accounts receivable (net) was €480,000.
b. What conclusions about the management of accounts receivable can be drawn from these data?

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2020 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/60. € 550,000 € 520,000 3,000,000 3,680,000