A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2020 · Q191 Mark
A company's results for a year showed credit sales of $500000. The trade receivables collection period was 73 days. In the next year, credit sales were expected to be $550000 and the collection period was not expected to change. What is the expected percentage change in trade receivables?
Adecrease of 10%
Bincrease of 10%
Cdecrease of 20%
Dincrease of 20%
✓ Correct answer
B: increase of 10%
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