Question

Ninety- percent of Zen company limited total sales of 6,00,000 is on credit. If the year end receivables turnover is 5, the average collection period (based on 365 days a year) and the year-end average receivables are respectively:

A 365 days and 1,08,000
B 73 days and 1,20,000
C 73 days and 1,08,000
D 81 days and 1,08,000
E 365 days and 1,20,000
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