If the planned level of sales is $146,000 and the planned average collection period is 40 days, the planned average level of debtors will be:
A) $3,650
B) $16,000
C) $14,600
D) $18,500

Question

Quizplus · Accepted Answer

To find the planned average level of debtors, you can use the formula: (Planned level of sales / 365 days) * Planned average collection period. So, ($146,000 / 365) * 40 = $16,000.

If the Planned Level of Sales Is $146,000 and the Planned