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Accounts receivable analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $ 725,000 $ 650,000 $600,000 Sales on account 5,637,500 4,687,500 a. For 20Y2 and 20Y3, determine (l) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place. b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 17, Problem 17.9EX
Textbook Problem

Accounts receivable analysis

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

  20Y3 20Y2 20Y1
Accounts receivable, end of year $ 725,000 $ 650,000 $600,000
Sales on account 5,637,500 4,687,500  

a. For 20Y2 and 20Y3, determine (l) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.

b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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Chapter 17 Solutions

Accounting
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