An evaluation of the books of Blair Supply , gives the
end-of-year accounts receivable balance, which is believed to consist of
amounts originating in the months indicated. The company had annual sales of $2.40
million. The firm extends 30-day credit terms.
a. Use the year-end total to evaluate the firm's collection system.
b. If 70% of the firm's sales occur between July and
December, would this affect the validity of your conclusion in part a?
Explain.
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