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.Solution
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