SAP, Inc. has a beginning receivables balance on January 1 of $390. Sales for January through April are $520, $580, $640, and $540, respectively. The accounts receivable period is 30 days. How
Much did the ﬁrm collect in the month of February? Assume that a year has 360 days.

Question

Quizplus · Accepted Answer

The accounts receivable period is 30 days, so the firm collects 1/12 of its sales in each month. In February, the firm collected 1/12 of its January sales, which were $520. So the firm collected $520 in February.

SAP, Inc Has a Beginning Receivables Balance on January 1 of of $390