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A company has credit sales of $600,000 and average accounts receivable of $100,000. The credit...

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Accounting

A company has credit sales of $600,000 and average accounts receivable of $100,000. The credit terms are 2/10, net 30.

Requirements:

(a) Calculate the accounts receivable turnover ratio. (b) Determine the average collection period. (c) Analyze the impact of the credit terms on cash flow. (d) Provide recommendations for improving accounts receivable management.

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