Luna Company reported the following figur Net Credit Sales Account receivables at end of year
Luna Company reported the following figur Net Credit Sales Account receivables at end of year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Luna Company reported the following figures:
2020
2019
Net Credit Sales
Account receivables at end of year
$572,000
$38,700
$600,000
$46,100
Required:
1) Compute Luna's collection period of receivables for 2020. (Round to the nearest day)
2) Suppose Luna's normal credit terms for a sale on account are "2/10, n/30". How well
does Luna's collection period compare to the company's credit terms? Is this good or bad
for Luna Company?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6b8c48d-17cf-4493-a908-562b64c019d9%2Fe8362606-0985-47f1-aebb-4e7ecc1e1e0a%2Fhcwkk0i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Luna Company reported the following figures:
2020
2019
Net Credit Sales
Account receivables at end of year
$572,000
$38,700
$600,000
$46,100
Required:
1) Compute Luna's collection period of receivables for 2020. (Round to the nearest day)
2) Suppose Luna's normal credit terms for a sale on account are "2/10, n/30". How well
does Luna's collection period compare to the company's credit terms? Is this good or bad
for Luna Company?
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