The Villas Corporation's annual sales (all on credit) totaled $540,000 in 2020. The company's accounts receivable turnover ratio was 5. Villas' average accounts receivable collection period and year end accounts receivable balance respectively were:

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The accounts receivable turnover ratio is calculated as annual credit sales divided by the average accounts receivable. Given a turnover ratio of 5 for Villas Corporation, with annual sales of $540,000, the average accounts receivable is $540,000 / 5 = $108,000. The average collection period is calculated as 365 days divided by the turnover ratio, which is 365 / 5 = 73 days. Therefore, the correct answer is 73 days and $108,000.

The Villas Corporation's Annual Sales (All on Credit) Totaled $540,000