Vaughan Company started the year off with an Accounts Receivable balance of $50,000. During the...
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Vaughan Company started the year off with an Accounts Receivable balance of $50,000. During the year credit sales were $949,000. Accounts Receivable at the end of year totaled $80,000. Vaughan's credit terms are 2/10, net 30. Is Vaughan Company's credit collection department doing a good job in its collections? Multiple Choice Yes - because the average collection period is less than 30 days. Yes because the average collection period is less than 10 days No - because the average collection period is more than 30 days. There is not enough information to determine if the collection department is doinga good job or not
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