103 :- A firm normally has Trade Receivables equal to two months’ credit Sales. During the coming year it expects Credit Sales of Rs 7,20,000 spread evenly over the year (12 months). What is the estimated amount of Trade Receivables at the end of the year ?
Solution :-
Closing Trade Receivables = Two Months Credit Sales
= 7,20,000 x 2/12
= Rs 1,20,000