Smith and Johnson has expected sales of $380, $340, $430 and $480 for the months of January through April, respectively. The accounts receivable period is 15 days. How much did the ﬁrm
Collect in the month of March? Assume that a year has 360 days.

Question

Quizplus · Accepted Answer

The firm collects sales from 15 days prior, so in March, it collects half of February's sales ($340/2 = $170) and half of March's sales ($430/2 = $215). Total collection in March is $170 + $215 = $385.

Smith and Johnson Has Expected Sales of $380, $340, $430