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    Question

    A company has credit sales of ₹36,00,000 during the

    Financial Year 2024-25. The company offers a trade discount of 5% on all sales and receives part payments from some customers amounting to ₹3,00,000, which are not yet recorded in the debtors turnover. The Debtors Turnover Ratio for the year is 6 times. Calculate the average collection period (in days) of the company, assuming a 360-day year.
    A 60 days Correct Answer Incorrect Answer
    B 45 days Correct Answer Incorrect Answer
    C 72 days Correct Answer Incorrect Answer
    D 30 days Correct Answer Incorrect Answer
    E 90 days Correct Answer Incorrect Answer

    Solution

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