Debtors and credit sales for a period are D 120,00 and D 600,00 respectively. The debtor's payment period would be

To calculate the debtor's payment period, we need to use the debtor's turnover ratio, which is calculated by dividing the credit sales by the average debtors for the period. The debtor's turnover ratio indicates the number of times the company has collected its average level of debtors during the period. In this question, the credit sales for the period are D 600,00, and the debtors are D 120,00. The average debtors can be calculated by dividing the total debtors by the number of days in the period. Assuming a 365-day accounting year, the average debtors would be: Average Debtors = (Total Debtors / Number of Days) x 365 = (D 120,00 / 365) x 365 = D 120,00 Now we can calculate the debtor's turnover ratio by dividing the credit sales by the average debtors: Debtor's Turnover Ratio = Credit Sales / Average Debtors = D 600,00 / D 120,00 = 5 The debtor's turnover ratio of 5 indicates that the company has collected its average level of debtors five times during the period. To determine the debtor's payment period, we need to convert this ratio into days. Debtor's Payment Period = Number of Days / Debtor's Turnover Ratio = 365 / 5 = 73 Therefore, the debtor's payment period is 73 days, and the correct answer is "73 days."