The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 2022 $550,000 $540,000 4,300,000 4,000,000 7.9 times 2021 46.2 days 2021 7.5 times 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 2022 $550,000 $540,000 4,300,000 4,000,000 7.9 times 2021 46.2 days 2021 7.5 times 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 8PB: The following select financial statement information from Vortex Computing. Compute the accounts...
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![The following data are taken from the financial statements of Colby Company.
Accounts receivable (net), end of year
Net sales on account
Terms for all sales are 1/10, n/45
Accounts Receivable turnover
Average collection period
(b)
2022
$550,000
2022
2021
4,300,000 4,000,000
7.9 times
$540,000
2021
7.5 times
46.2 days 48.7 days
What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average
collections period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6e9c4bd-871a-4981-89df-b3c2cf1f4866%2Fe8653311-f27e-4cef-bbb4-b20f22620298%2Fi3lxs8h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following data are taken from the financial statements of Colby Company.
Accounts receivable (net), end of year
Net sales on account
Terms for all sales are 1/10, n/45
Accounts Receivable turnover
Average collection period
(b)
2022
$550,000
2022
2021
4,300,000 4,000,000
7.9 times
$540,000
2021
7.5 times
46.2 days 48.7 days
What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average
collections period.
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