The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
|Accounts receivable, end of year||$113,600||$120,000||$128,200|
|Sales on account||747,520||732,190|
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.
|1. Accounts receivable turnover|
|2. Number of days' sales in receivables||days||days|
b. The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
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