The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Year 3Year 2Year 1Accounts receivable, end of year$113,600 $120,000 $128,200 Sales700,800 682,550 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Year 3 Year 2 1. Accounts receivable turnoverfill in the blank 1 fill in the blank 2 2. Number of days' sales in receivablesfill in the blank 3daysfill in the blank 4daysb. What conclusion can be drawn from these data concerning accounts receivable and credit policies?The collection of accounts receivable has . This can be seen in the in accounts receivable turnover and the in the collection period. The company either became aggressive in collecting accounts receivable or restrictive in granting credit to customers in Year 3. provide a solution

Name: The following data are taken from the financial statements of Rise and
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Description: The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Year 3Year 2Year 1Accounts receivable, end of year$113,600 $120,000 $128,200 Sales700,800 682,550 a. For Years 2 and 3, determ

Sales are made on cash or credit basis. Sales on credit basis are recorded in accounts receivables.…

Answered: The following data are taken from the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30.

	Year 3	Year 2	Year 1
Accounts receivable, end of year	$113,600		$120,000	$128,200
Sales	700,800		682,550

a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.

	Year 3		Year 2
1. Accounts receivable turnover	fill in the blank 1		fill in the blank 2
2. Number of days' sales in receivables	fill in the blank 3	days	fill in the blank 4	days

b. What conclusion can be drawn from these data concerning accounts receivable and credit policies?
The collection of accounts receivable has

. This can be seen in the

in accounts receivable turnover and the

in the collection period. The company either became

aggressive in collecting accounts receivable or

restrictive in granting credit to customers in Year 3.

provide a solution

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