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If a company has RM200,000 in Costs of goods sold, RM 15,000 inventories and RM 12,500 inventories. What is its average payment period?A.24 daysB.20.4134 daysC.24.8125 daysD.22.8125 days

Question

If a company has RM200,000 in Costs of goods sold, RM 15,000 inventories and RM 12,500 inventories. What is its average payment period?A.24 daysB.20.4134 daysC.24.8125 daysD.22.8125 days

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Solution

The question seems to be incomplete. The average payment period is calculated using the formula: (Inventory / Cost of Goods Sold) x 365. However, you've provided two different inventory values (RM 15,000 and RM 12,500) and no context on how to use them. Could you please provide more information or clarify the question?

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