Brief Exercise 18-11 The following data are taken from the financial statements of Rainsberger Company.
| 2018 |
2017 |
| Accounts receivable (net), end of year |
$540,000 |
$475,000 |
| Net sales on account |
3,950,000 |
3,170,000 |
| Terms for all sales are 1/10, n/60. |
Compute for each year the accounts receivable turnover. At the end of 2016, accounts receivable (net) was $500,000. (Round answers to 1 decimal place, e.g. 1.6.)
Compute for each year the average collection period. At the end of 2016, accounts receivable (net) was $500,000. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.)