Calculating the average collection period for customers (debtor days) Steps:

• Identify the formula for the period of credit taken by customers: (Trade receivables / Annual credit sales) × 365 days.
• Note that all sales are on credit, so credit sales equal total sales.
• Given trade receivables = $120,000, but annual credit sales are not provided (purchases of$450,000 relate to costs, not sales).
• Without sales figure, the exact debtor days cannot be computed.

Why C is correct:

• The problem identifies C as correct, but the given data lacks sales, making verification impossible per the standard formula.

Why the others are wrong:

• A, B, D: Irrelevant without sales data to plug into the formula.

Not enough information. Final answer: Not enough information.