Martinique's Boutique has a 45-day collection period.Sales for the next four quarters are estimated at $1,500,$1,600,$2,100,and $1,900,respectively,starting with the first quarter of the year.Given this information,which one of the following statements is correct? Assume a 360-day year.
A) The firm will collect $1,575 in Quarter 2.
B) The accounts receivable balance at the beginning of Quarter 4 will be $950.
C) The firm will collect $750 from Quarter 2 sales in Quarter 3.
D) The firm will have an accounts receivable balance of $950 at the end of the year.
E) The firm will collect a total of $2,100 in Quarter 4.
Correct Answer:
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