Day: November 15, 2020

The table shows an extract from a company’s accounts for the year ended 31 December 2001. 

credit sales — £200,000
cost of sales — £160,000
debtors — £32,876
creditors — £24,658

What is the trade receivable or debtor collection period?

Select ONE answer:

1. 30 days
2. 45 days
3. 60 days
4. 75 days

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – (32,876 / 200,000) * 365
4. Not correct

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