Trendy Traders Reported Total Sales Amounting to $1,800,000 in the Year

question 26

Multiple Choice

Trendy Traders reported total sales amounting to $1,800,000 in the year 2018, of which 80% were on credit. At 31 December, customers owed $200,000. If the firm operates for 365 days a year, how long, on average, does it take to collect money from its debtors?

• A)29 days.
• B)13 days.
• C)10 days.
• D)51 days.

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Definitions:

Established

Refers to something that has been in existence for a long time and is accepted by many or most people.

Board of Governors

A governing body at the top of an organization or institution, such as the Federal Reserve, responsible for overseeing its operations and making key decisions.

Fourteen-Year Term

A fixed period of fourteen years, often referenced in legal, contractual, or tenure contexts.

Four-Year Term

A period of four years that is commonly associated with the duration of a political office or specific governmental or organizational mandates.