ACME Inc.,a music publishing firm located in Tennessee,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 50% by the end of the first month (August),40% by the end of the second month (September),7% by the end of the third month (October),and 3% default on their bills.What is the total dollar value of first-quarter actual sales that will NOT be collected? $$\begin{array} { | l | l | l | l | l | l | }
\hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \
\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \
\hline
\end{array}$$

Question

ACME Inc.,a music publishing firm located in Tennessee,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 50% by the end of the first month (August),40% by the end of the second month (September),7% by the end of the third month (October),and 3% default on their bills.What is the total dollar value of first-quarter actual sales that will NOT be collected? $$\begin{array} { | l | l | l | l | l | l | } 
\hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \
\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The total dollar value of first-quarter actual sales that will NOT be collected is calculated by adding 3% of each month's sales (since 3% default on their bills). For January, February, and March, the sales are $88,000, $74,000, and $96,000 respectively. - January: $88,000 * 3% = $2,640- February: $74,000 * 3% = $2,220- March: $96,000 * 3% = $2,880Adding these amounts gives $2,640 + $2,220 + $2,880 = $7,740.

ACME Inc,a Music Publishing Firm Located in Tennessee,bills Its Clients on on the First