The following account balances are taken from the records of the Faraway Travel Agency: Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.Required1. Compute Faraways accounts receivable turnover ratio for 2010 and 2009.2. Compute the number of days sales in receivables for 2010 and 2009. Assume 360 days in a year.3. Comment on

Chapter 13, Exercises #1
The following account balances are taken from the records of the Faraway Travel Agency:

The following account balances are taken from

Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.
Required
1. Compute Faraway€™s accounts receivable turnover ratio for 2010 and 2009.
2. Compute the number of days€™ sales in receivables for 2010 and 2009. Assume 360 days in a year.
3. Comment on the efficiency of Faraway€™s collection efforts over the two-yearperiod.

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