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average debtors/credit sales X 365

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16y ago

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Debtor collection period ratio?

Debt Collection Period ratio, is the year's sales which were outstanding at the balance sheet date, expresse in days. A rough measure of the days of credit that a firm's offers to its suppliers/clients. The formula is as follows: = (average debtors / turnover) * 365 Debt Collection Period ratio, is the year's sales which were outstanding at the balance sheet date, expresse in days. A rough measure of the days of credit that a firm's offers to its suppliers/clients. The formula is as follows: = (average debtors / turnover) * 365


What is Journal entry for provision for debtors?

No entry for opening debtors these are just transferred from previous period to current period.


What s debtors payment period?

The debtors payment period, also known as the accounts receivable turnover period, measures the average time it takes for a company to collect payments from its customers after a sale. It is typically expressed in days and can be calculated by dividing accounts receivable by average daily sales. A shorter payment period indicates efficient collection practices, while a longer period may suggest issues in credit policies or collection processes. Monitoring this metric helps businesses manage cash flow and assess their credit risk.


Does credit counseling damage your credit for a long period of time?

Less than if you stay in a default or bankruptcy situation. Credit counseling teaches debtors how to effectively manage their debt. I've only personally seen credit counseling improve a person's credit. Financial education is key to moving forward.


What is Accounts receivable collection period ratio formula?

Average Colection period: Accounts Receivables divided by Average daily credit sales


What is the Formula for hertz?

You find formulas down in the related links for conversion and calculation: Time period, cycle duration, periodic time to frequency in Hz.


How do you calculate Average credit period?

average credit period


Is there a look back period for debtors to file a judgment on a person alone?

Your question makes no sense. Debtors do not file judgments. Creditors seek judgments and courts file them.


What does the final balance on a sales ledger control account represent?

it represents the amount that trade receivbles owe to the business at the end of the financial period (dr balance) credit balance represents the amount that the business owe to the debtors (minority balance)


What are the some reasons for decreasing debtors collection period?

A decreasing debtors collection period can result from improved credit policies, more efficient invoicing processes, and enhanced customer relationship management, which encourage timely payments. The implementation of stricter payment terms and active follow-up on outstanding invoices can also contribute to faster collections. Additionally, offering discounts for early payments or utilizing technology for automated reminders can further reduce the collection period, leading to better cash flow for the business.


Assuming that sales do not change what happens on the balance sheet as the collection period increases?

debtors increase


What are the some reasons for decrease in debtors collection period?

A decrease in the debtors collection period can occur due to improved credit policies, which may involve stricter credit assessments and more effective risk management. Enhanced collection processes, such as automated reminders and follow-ups, can also lead to quicker payments. Additionally, offering discounts for early payments or implementing more flexible payment options can incentivize customers to settle their debts sooner. Finally, a stronger economic environment may result in better cash flow for customers, enabling them to pay their debts more promptly.