Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 46

Collection period for receivables
Contemporary Media Sign Company sells on account. Recently, Contemporary reported the following figures:

Requirements
1. Compute Contemporary's average collection period on receivables during 2012.
2. Suppose Contemporary's normal credit terms for a sale on account are "2/10, net 30." How well does Contemporary's collection period compare to the company's credit terms Is this good or bad for Contemporary