FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![**Brief Exercise 18-11 a1-a2**
The following data are taken from the financial statements of Colby Company.
| | 2020 | 2019 |
|------------------------|------------|------------|
| Accounts receivable (net), end of year | $525,000 | $540,000 |
| Net sales on account | 3,940,500 | 3,184,000 |
| Terms for all sales are | 1/10, n/45 | |
**Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $510,000.**
*(Round answers to 1 decimal place, e.g., 1.6.)*
| | 2020 | 2019 |
|------------------------|------------|------------|
| Accounts receivable turnover | _________ times | _________ times |
**Compute for each year the average collection period. At the end of 2018, accounts receivable was $510,000. Use 365 days for calculation.**
*(Round answers to 1 decimal place, e.g., 1.6.)*
| | 2020 | 2019 |
|------------------------|------------|------------|
| Average collection period | _________ days | _________ days |
[LINK TO TEXT]
**Note:** There are no graphs or diagrams included in the provided image. The exercise presents a tabulated numerical data format along with instructions for calculations.](https://content.bartleby.com/qna-images/question/f9e159a4-9637-434e-a29d-9a02e82e3af6/a04494e0-4320-4cb9-9b40-3c7fbc01d44d/ltsb5ka_reoriented.jpeg)
Transcribed Image Text:**Brief Exercise 18-11 a1-a2**
The following data are taken from the financial statements of Colby Company.
| | 2020 | 2019 |
|------------------------|------------|------------|
| Accounts receivable (net), end of year | $525,000 | $540,000 |
| Net sales on account | 3,940,500 | 3,184,000 |
| Terms for all sales are | 1/10, n/45 | |
**Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $510,000.**
*(Round answers to 1 decimal place, e.g., 1.6.)*
| | 2020 | 2019 |
|------------------------|------------|------------|
| Accounts receivable turnover | _________ times | _________ times |
**Compute for each year the average collection period. At the end of 2018, accounts receivable was $510,000. Use 365 days for calculation.**
*(Round answers to 1 decimal place, e.g., 1.6.)*
| | 2020 | 2019 |
|------------------------|------------|------------|
| Average collection period | _________ days | _________ days |
[LINK TO TEXT]
**Note:** There are no graphs or diagrams included in the provided image. The exercise presents a tabulated numerical data format along with instructions for calculations.
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