Chapter 9, Problem 9.10E

To determine

Concept Introduction:

Trade Receivable turnover Ratio: It is a ratio between the total credit sales and average trade receivables of the business. It tells us about the how much of our turnover happens in credit and Amount of sales to the trade receivables.

Days Sales in receivables: It means we calculate the number of days our trade receivables becomes trough credit sale.

Requirement-1:

To Calculate:

Accounts receivable turnover and the day's sales in receivables.

To determine

Concept Introduction:

Trade Receivable turnover Ratio: It is a ratio between the total credit sales and average trade receivables of the business. It tells us about the how much of our turnover is happen in credit and how many times our sales to the trade receivables.

Days Sales in receivables: It means we calculate in how many days our trade receivables becomes trough credit sale.

Requirement-2:

To Identify:

Compare the two companies with regard to their credit card policy.