The Following Information Is Available for Edmiston Company Instructions
Compute the Accounts Receivable Turnover and the Average Collection

question 90

Essay

The following information is available for Edmiston Company. $\begin{array}{lr}\text { Beginning accounts receivable } & \$ 70,000 \\\text { Ending accounts receivable } & 110,000 \\\text { Net sales } & 990,000\end{array}$ Instructions
Compute the accounts receivable turnover and the average collection period.

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Definitions:

Consumption

Refers to the act of using goods and services to satisfy needs and wants.

Income

The money received on a regular basis for work or through investments.

Optimal Consumption

The level of consumption at which a consumer achieves the highest possible satisfaction or utility given their income and the prices of goods and services.

Initial Endowment

The initial distribution of income, wealth, or resources among individuals or groups in an economy.