The Dawson Brothers have a 60 day collection period. Sales for the next calendar year are estimated at $1,800, $1,300, $2,200 and $2,000, respectively, by quarter starting with the first
Quarter of the year. Given this information, which one of the following statements is correct?
Assume a year has 360 days.
A) The firm will collect $1,200 in Quarter 2.
B) The accounts receivable balance at the beginning of Quarter 4 will be $1,466.67.
C) The firm will collect $866.67 from Quarter 3 sales in Quarter 4.
D) The firm will have an accounts receivable balance of $666.67 at the end of the year.
E) The firm will collect a total of $1,666.67 in Quarter 4.
Correct Answer:
Verified
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