Coolman Outdoor has estimated monthly sales for February through May of $12,480, $13,260, $13,910, and $14,820, respectively.If the accounts receivable period is 45 days, how much will be collected in May? Assume each month has 30 days.

Question

Quizplus · Accepted Answer

Since the accounts receivable period is 45 days, sales made in February will be collected in April, and sales made in March will be collected in May. Therefore, the amount collected in May will be the sales from March, which is $13,910.

Coolman Outdoor Has Estimated Monthly Sales for February Through May