Day: August 14, 2023

Alex plc’s sales are made evenly over a year (360 days).

10 % of the sales are for cash.

The debtor balance is £26,700 and the debtor collection period is 30 days.

What are the total sales (cash and credit) for the year?

Select ONE answer:

1. £320,400
2. £356,000
3. £801,000
4. £890,000

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 2

1. Not correct
2. Correct – £26,700 * 12 = £320,400 / 0.9 = £356,000
3. Not correct
4. Not correct

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