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Question: Computing the collection period for receivables Distinctive Media Sign Incorporated sells on account. Recently, Distinctive reported the following figures:

Requirements: 1. Compute Distinctive's days' sales in receivables for 2016. (Round to the nearest day.)

2. Suppose Distinctive's normal credit terms for a sale on account are "2/10, net 30." How well does Distinctive's collection period compare to the company's credit terms? Is this good or bad for Distinctive?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92647850

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