McDonald and Sons have expected sales of $320, $350, $410, and $460 for the months of January through April, respectively. The accounts receivable period is 15 days. What is the accounts
Receivable balance at the end of February? Assume that a year has 360 days.

Question

Quizplus · Accepted Answer

The accounts receivable balance at the end of February is based on the sales from the last 15 days of February. Since February has 28 days, the sales for the last 15 days are half of February's sales. February's sales are $350, so the accounts receivable balance is $350 / 2 = $175.

McDonald and Sons Have Expected Sales of $320, $350, $410