The following data are taken from the financial statements of Outdoor Patio Inc. Terms of all sales are 2/10, n/60.

a. For Years 2 and 3, determine
(1) The accounts receivable turnover and
(2) The days' sales in receivables. Round to nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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Year 3 Year 2 Year 1 Accounts receivable, end of year900,000 Sales 750,000 $600,000 5,280,000 3,915,000