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<p><strong>What is the Average collection period (360 days a year) and Average Debtors of the firm?</strong></p> <p><strong>(a)45 days and1,00,000 </strong></p> <p><strong>(b)360 days and1,00,000,</strong></p> <p><strong>(c)45 days and8,00,000 </strong></p> <p><strong>(d)360 days and1,25,000</strong></p>
A
ANSWER A
(a)45 days and1,00,000 $
Average Debtors of the firm's = Net credit sales / Receivable Turnover =800000 /8 =100000 $
Average collection period = (days * Average amount of accounts receivables)/ net credit sales during period
= (360*100000 )/800000 =45 days
Agreed with all ................. Ans A
Average debtors=(1000000*80%)/8 = 100,000
Average Collection period=360/8 times=45 days
The correct answer is A.............45 days and100,000
(a)45 days and1,00,000
This ANSWER is correct
answer is a
A/r
credit sales =1000000*.8=800000
A/R turnover =8
thus average A/R =100000
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NUMBER OF DAYS in receivable
=360 or365 ( number of year days ) / Account receivable turnover
=360/8 =45
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answer is A
Answer a
a
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