{"id":42857,"date":"2024-04-15T21:21:08","date_gmt":"2024-04-15T21:21:08","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=42857"},"modified":"2024-04-15T21:21:08","modified_gmt":"2024-04-15T21:21:08","slug":"if-the-average-collection-period-is-15-days-and-average-book-receivables-is-rs-60000-then-what-will-be-the-total-annual-credit-sales","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-average-collection-period-is-15-days-and-average-book-receivables-is-rs-60000-then-what-will-be-the-total-annual-credit-sales\/","title":{"rendered":"If the average collection period is 15 days and average book receivables is Rs. 60,000 then what will be the total annual credit sales?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 14,00,000&#8243; option2=&#8221;Rs. 9,00,000&#8243; option3=&#8221;Rs. 2,16,00,000&#8243; option4=&#8221;Rs. 1,08,00,000&#8243; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. Rs. 1,08,00,000.<\/p>\n<p>The average collection period is the average number of days it takes a company to collect its accounts receivable. It is calculated by dividing the accounts receivable by the average daily sales.<\/p>\n<p>The average book receivables is the amount of money that a company is owed by its customers. It is calculated by taking the total accounts receivable and dividing it by the number of days in the period.<\/p>\n<p>The total annual credit sales is the total amount of money that a company sells on credit in a year. It is calculated by taking the average daily sales and multiplying it by the number of days in a year.<\/p>\n<p>To calculate the total annual credit sales, we can use the following formula:<\/p>\n<p>Total annual credit sales = Average daily sales x Number of days in a year<\/p>\n<p>Average daily sales = Average book receivables \/ Average collection period<\/p>\n<p>Number of days in a year = 365 days<\/p>\n<p>Therefore, the total annual credit sales is:<\/p>\n<p>Total annual credit sales = Rs. 60,000 \/ 15 days x 365 days = Rs. 1,08,00,000<\/p>\n<p>Option A is incorrect because it is the total annual sales, not the total annual credit sales.<\/p>\n<p>Option B is incorrect because it is the total annual credit sales divided by 2.<\/p>\n<p>Option C is incorrect because it is the total annual credit sales multiplied by 4.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 14,00,000&#8243; option2=&#8221;Rs. 9,00,000&#8243; option3=&#8221;Rs. 2,16,00,000&#8243; option4=&#8221;Rs. 1,08,00,000&#8243; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-42857","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If the average collection period is 15 days and average book receivables is Rs. 60,000 then what will be the total annual credit sales?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-the-average-collection-period-is-15-days-and-average-book-receivables-is-rs-60000-then-what-will-be-the-total-annual-credit-sales\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If the average collection period is 15 days and average book receivables is Rs. 60,000 then what will be the total annual credit sales?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 14,00,000&#8243; 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