Solve the following:-

Dear Student,

Where,

Net Credit Sales = 68,600 + 5,000 + 15,000- 10,000
= 78,600
Average Receivables = (10,000 + 15,000) /2
= 12,500
Debtor Turnover Ratio = 78,600/12,500
= 6.288

(ii)Debtor Collection Period :-


in months = 12 / 6.288 = 1.91
in days = 365 / 6.288 = 58.048

Regards