Tag: Trade Receivables

During a financial year, Alex Ltd made cash sales of £63,875 and credit sales of £146,000.

Trade receivables pay every 40 days.

What is the total of trade receivables at the end of the year?

Select ONE answer:

1. £7,000
2. £12,167
3. £16,000
4. £23,000

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 3

1. Not correct
2. Not correct
3. Correct –£146,000 / 365 days * 40 days = £16,000
4. Not correct

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