87 A firm normally has Trade Receivables equal to two months' Credit Sales During the coming year it - Accountancy - Accounting Ratios

Question

87 A firm normally has Trade Receivables equal to two months'
Credit Sales During the coming year it expects Credit Sales of Rs
7,20,000 dpread evenly over the year (12 months) What is the
estimated amount of Trade Receivables at the end of the year?

Nitin Verma · Accepted Answer

Dear Student,
Amount of Trade Receivables =
7,20,000×212= Rs 1,20,000

Regards

87. A firm normally has Trade Receivables equal to two months' Credit Sales. During the coming year it expects Credit Sales of Rs. 7,20,000 dpread evenly over the year (12 months). What is the estimated amount of Trade Receivables at the end of the year?