Similarly, debtors closing balances can be calculated by dividing the turnover amount of the appropriate year by 365 and multiplying the result by the number of days’ sales expected to be outstanding at the end of each year. Debtor trading terms and the ratio of cash and credit sales should also be considered in determining this estimate.

CopyFinancial > Similarly, debtors closing balances can be calculated by dividing the turnover amount of the appropriate year by 365 and multiplying the result by the number of days’ sales expected to be outstanding at the end of each year. Debtor trading terms and the ratio of cash and credit sales should also be considered in determining this estimate.