Credit sales for the year is rs 100000 and closing debtors are rs 10000.Calculate the collection period of the fitm?
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Here's the answer ⤵
The average collection period is the amount of time it takes for a business to receive payments owed in terms of accounts receivable.
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period.
Hope it helps ☺
Here's the answer ⤵
The average collection period is the amount of time it takes for a business to receive payments owed in terms of accounts receivable.
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period.
Hope it helps ☺
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