
Concept explainers
(a)(1)
Average Collection Period: The average collection period refers to the average number of days which a company takes to collect the accounts receivable. The average collection period is determined by dividing the number of days in a year from the accounts receivable turnover.
To determine: (a) For each year (1) the accounts receivable turnover and (2) the average collection period and (b) conclusions that can be drawn from the data.
(b)
(b) conclusions that can be drawn from the data.

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Chapter 18 Solutions
Accounting Principles, Volume 2: Chapters 13 - 26
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