Winther Company has a receivables turnover of 15 times. The average net receivables during the period are P430,000. What is the amount of net credit sales for the period? Choices: P500,000 P6,000,000 P430,000 P6,450,000

Winther Company has a receivables turnover of 15 times. The average net receivables during the period are P430,000. What is the amount of net credit sales for the period? Choices: P500,000 P6,000,000 P430,000 P6,450,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Winther Company has a receivables turnover of 15 times. The average net receivables during the period are P430,000. What is the amount of net credit sales for the period?

Choices:

P500,000

P6,000,000

P430,000

P6,450,000

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