Question

If credit sale is 100000, credit period is 30 days, calculate the average receivables

Answer 1

average collection period= average receivables/ssales/360 or 365 days
30= average receivables/100000/360
average receivables=8333

Answer 2

right answer is 3333

net credit sale/ no.of days = account receivables

so 100000/30 =3333