A company has accounts receivable of $100,000 at the beginning of the year and $80,000 at the

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Question:

A company has accounts receivable of $100,000 at the beginning of the year and $80,000 at the end of the year. During the year, the company had credit sales of $500,000 and cash collections from customers of $450,000.

a) Calculate the company's accounts receivable turnover ratio for the year.
b) Calculate the company's average collection period for the year.