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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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