the firm that you work for had credit sales of rs 3,500,000 last year and on average had rs 33,000 in its accounts receivable during the year what is its average collection period?
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Answer:
trade receivable turnover ratio
=. net credit sale/ average receivable
= 3500000/33000
=106.06times
average collection period= 365 days/ratio
= 365/106.06
=3.44= 3 days
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