Credit Control query
samilou67
Registered Posts: 6 New contributor 🐸
Can anyone shed some light on this for me?
Wilko has been trading with Johny for many years. Johny purchased 1200000 units from will in 2013. Sale price of the product is £6 per unit including VAT. At the end of 2013 johny owed £986301to Wilko.
What is the receivable collection period in days for the amount owed? The answer is 50 but I can't work out how?
Please help.
Wilko has been trading with Johny for many years. Johny purchased 1200000 units from will in 2013. Sale price of the product is £6 per unit including VAT. At the end of 2013 johny owed £986301to Wilko.
What is the receivable collection period in days for the amount owed? The answer is 50 but I can't work out how?
Please help.
0
Comments
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Hello,
The formula for calculation Debtor Days is Debtors / Sales * 365 so..........
1,200,000 Units @ £ 6 = £ 7,200,000
Closing Debtors = £ 986,601
Therefore £ 986,301 / £ 7,200,000 * 365 Days = 50 Days
Job Done
0 -
oh thank you, very grateful
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