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Question - Swift Media Sign Company sells on account. Recently, Swift reported these figures:
2014
2013
Net sales
$600,060
$570,000
Receivables at year end
42,800
38,200
Required -
1. Compute Swift Media Sign Company's days' sales in average receivables for 2014.
2. Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.
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