The accounts receivable turnover rate for Tough Pants Clothing has gone from an average of 12.6 times to 14.1 times per year.How has this change affected the firm's accounts receivable period?

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The accounts receivable turnover rate increase indicates that the firm is collecting its receivables faster. The accounts receivable period is calculated as 365 divided by the turnover rate. The change from 12.6 to 14.1 times results in a decrease of approximately 3.08 days in the accounts receivable period.

The Accounts Receivable Turnover Rate for Tough Pants Clothing Has