Trade receivable turnover ratio


This query is : Resolved 

10 December 2021 Why provison for doubtful debt is not deducted from trade receivables while calculating trade receivable turnover ratio ?

10 December 2021 t should be computed keeping in mind that provision for doubtful debts is not deducted from trade receivables since the purpose is to calculate the number of days for which sales are tied up in trade receivables and not to ascertain realizable value of debtors.


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