Calculate Debtors Turnover Ratio.
Opening Debtors = 40000
Credit Sales = 260000
Goods Returns = 10000
Cash received = 220000
Discount Allowed = 10000
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The receivables turnover ratio is an activity ratiomeasuring how efficiently a firm uses its assets. Receivables turnover ratio can be calculated by dividing the net value of credit sales during a given period by the average accounts receivableduring the same period.
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Answer:
Opening debtor turnover ratio=credit sale /average debtor
Credit sale = 260000
Average debtor =opening debtor +closing debtor /2
Closing debtor = cash received - goods return - discount allowed
220000-10000-10000=200000
Opening debtor =40000
Closing debtor =200000
40000+200000/2=120000
260000/120000=21.67
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