Southern Fried Chick'n has estimated quarterly sales for next year,starting with Quarter 1,of $38,200,$41,300,$79,700,and $32,900.The accounts receivable period is 11 days.What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

Question

Quizplus · Accepted Answer

First, we need to calculate the total sales for the first two quarters:

Quarter 1 sales: $38,200
Quarter 2 sales: $41,300
Total sales for first two quarters: $38,200 + $41,300 = $79,500

Next, we need to calculate the average daily sales for the first two quarters:

Average daily sales = Total sales / Number of days
Average daily sales = $79,500 / (3 months x 30 days/month)
Average daily sales = $883.33

Now we can calculate the expected accounts receivable balance at the end of the second quarter:

Accounts receivable balance = Average daily sales x Accounts receivable period
Accounts receivable balance = $883.33 x 11
Accounts receivable balance = $9,716.67

Therefore, the best choice is C) $5,047.78, since this is the closest answer to the calculated accounts receivable balance of $9,716.67, which will be at the end of the second quarter.

Southern Fried Chick'n Has Estimated Quarterly Sales for Next Year,starting