The following supplementary records summarize Tesla Company's merchandising activities for year 2016

The following supplementary records summarize Tesla Company's merchandising activities for year 2016 (it uses a perpetual inventory system). Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances.

An evaluation of the books of Blair​ Supply ​, gives the​ end-of-year accounts receivable​ balance

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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