Chapter 3A company has prepared the following projections for a year 2021The data for the 2020 is given belowSales 21000 unitsSelling Price per unit RO.40Variable Costs per unit RO.25Total Costs per unit RO.35Credit period allowed One Month. For the year 2021 company proposes to increase the creditperiod allowed to its customers from one month to two month. It is expected that due to changein policy as above will increase the sales by 8 % Calculate the closing receivable for the year2021(p)f10fsfof7f8www&50 6 17 V 8 A 9 4 048R Ty Y!U I同%24

The question is related to evaluation of credit policy and calculation of closing receivables for…

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A company has prepared the following p The data for the 2020 is given below Sales 21000 units Selling Price per unit RO.40 Variable Costs per unit RO.25 Total Costs per unit RO.35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Chapter 3
A company has prepared the following projections for a year 2021
The data for the 2020 is given below
Sales 21000 units
Selling Price per unit RO.40
Variable Costs per unit RO.25
Total Costs per unit RO.35
Credit period allowed One Month. For the year 2021 company proposes to increase the credit
period allowed to its customers from one month to two month. It is expected that due to change
in policy as above will increase the sales by 8 % Calculate the closing receivable for the year
2021
(p)
f10
fs
fo
f7
f8
www
&
50 6 1
7 V 8 A 9 4 0
48
R Ty Y!U I
同
%24

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