Day: March 11, 2023

Alex ltd’s has cash sales of £69,030 and credit sales of £1,406,070 in a year (360 days).

The Trade Receivable ratio is 40 days.

What is the closing accounts receivable’s balance in £s?

Select ONE answer:

1. 35,152
2. 36,878
3. 156,230
4. 163,900

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 – 156,230 / 1,406,070 * 360 = 40 days
4. Not correct

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