Shelly Company reported the following financial information: $\begin{array}{lrr}& 12/31/17& 12/31/16\\ \text{ Accounts receivable }& \$340,000& \$360,000\\ \text{ Net credit sales }& 2,450,000& 2,420,000\end{array}$ Compute (a) the accounts receivable turnover and (b) the average collection period for 2017.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects receivables or the credit it extends to customers.

Average Collection Period

A financial metric that measures the average number of days it takes for a company to collect payments from its customers.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.