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If the net sales of the year is Rs 2 50...

This question belongs to Commerce Accounting
Accounting
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If the net sales of the year is Rs. 2,50,000 and the debtors is Rs. 50,000, then the average collection period will be

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Correct Answer: Option C
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Naveed Ahmad
Naveed Ahmad 3 years ago
Average Collection Period = Sundry Debtors/ Net Sales×No. Of Days in A Year
Average Collection Period= 50,000/250,000×365
Average Collection Period= 73 Days
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