Question

Calculate Trade Receivables Turnover Ratio from the following information
Opening Trade Receivables 75,000 Cash Received from Debtors 5,25,000 closing Trade Receivables 1,12,500: Sales Return 37,500​

Answer 1

Explanation:

thanks for the points thanks for the points

Answer 2

Answer:

5.2

Explanation:

Net credit sales = Sales on credit basis - sales returns

                          =        525000        -    37500 = 487500

Average T/R = (opening T/R + closing T/R ) / 2

                    = (75000+112500) / 2 = 93750

Trade Receivables Turnover Ratio = Net credit sales / Average T/R

                          = 487500 / 93750 = 5.2

turnover in days = 70.19