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P7 sep/dec 17-Goldfinch

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  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
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  • November 14, 2021 at 1:19 pm #640621
    gayathree1234
    Member
    • Topics: 40
    • Replies: 1
    • ☆

    Hi,

    In part c, the answer mentioned that there is unusual trend in the collection period.Could you please explain why there is unusual trend?

    Thank you..:)

    November 16, 2021 at 9:33 am #640762
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6789
    • ☆☆☆☆☆

    The collection period for residential customers has increased by 7 days (65 – 58) – but for business customer has decreased by 5 days (50 – 55). Do you not think that unusual? If there was some change (whether “good” or “bad”) in credit control procedures, you might expect all receivables to be similarly affected.

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