The following data are taken from the financial statements of Mercado Decorations: 2009 2008

The following data are taken from the financial statements of Mercado Decorations:

2009

2008

Accounts receivable (net), end of year

$ 550,000

$ 520,000

Net sales on account

3,850,000

3,100,000

(a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2007, accounts receivable (net) was $490,000.
(b) What conclusions about the management of accounts receivable can be drawn from these data?