Compute for each year the accounts receivable turnover. (Raunda

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Brief Exercise 18-11 a1-a2**

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

|                        | 2020       | 2019       |
|------------------------|------------|------------|
| Accounts receivable (net), end of year | $525,000    | $540,000    |
| Net sales on account   | 3,940,500  | 3,184,000  |
| Terms for all sales are | 1/10, n/45 |            |

**Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $510,000.**  
*(Round answers to 1 decimal place, e.g., 1.6.)*

|                        | 2020       | 2019       |
|------------------------|------------|------------|
| Accounts receivable turnover | _________ times | _________ times |

**Compute for each year the average collection period. At the end of 2018, accounts receivable was $510,000. Use 365 days for calculation.**  
*(Round answers to 1 decimal place, e.g., 1.6.)*

|                        | 2020       | 2019       |
|------------------------|------------|------------|
| Average collection period | _________ days | _________ days |

[LINK TO TEXT]

**Note:** There are no graphs or diagrams included in the provided image. The exercise presents a tabulated numerical data format along with instructions for calculations.
Transcribed Image Text:**Brief Exercise 18-11 a1-a2** The following data are taken from the financial statements of Colby Company. | | 2020 | 2019 | |------------------------|------------|------------| | Accounts receivable (net), end of year | $525,000 | $540,000 | | Net sales on account | 3,940,500 | 3,184,000 | | Terms for all sales are | 1/10, n/45 | | **Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $510,000.** *(Round answers to 1 decimal place, e.g., 1.6.)* | | 2020 | 2019 | |------------------------|------------|------------| | Accounts receivable turnover | _________ times | _________ times | **Compute for each year the average collection period. At the end of 2018, accounts receivable was $510,000. Use 365 days for calculation.** *(Round answers to 1 decimal place, e.g., 1.6.)* | | 2020 | 2019 | |------------------------|------------|------------| | Average collection period | _________ days | _________ days | [LINK TO TEXT] **Note:** There are no graphs or diagrams included in the provided image. The exercise presents a tabulated numerical data format along with instructions for calculations.
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