Neco Model Questions Vol1 2021 Financial Accounting Question 46
Practice objective / multiple choice question 46 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
The Sales Ledger Control account for March shows an opening debtor balance of ₦120,000 (debit). During the month, credit sales were ₦350,000, cash receipts from debtors amounted to ₦260,000, sales returns were ₦15,000 and discounts allowed were ₦5,000. Assuming the month has 30 days and credit sales are evenly distributed, what is the average collection period (in days) at the end of March? Round your answer to one decimal place. Use the formula \(\text{Average collection period}=\frac{\text{Closing balance}}{\text{Average daily credit sales}}\).
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 46. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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