Smith and Johnson have expected sales of £380,£340,£430 and £480 for the months of January through to April,respectively.The trade receivables period is 15 days.How much did the firm collect in the month of March? Assume that a year has 360 days.

Question

Quizplus · Accepted Answer

To find the amount collected in the month of March, we need to calculate the sales made in March and then apply the trade receivables period of 15 days to that amount.

Total sales for January to April = £380 + £340 + £430 + £480 = £1630

Sales made in March = £430

Now, we need to apply the trade receivables period of 15 days:

Trade receivables period = 15/360 = 1/24 (since there are 360 days in a year)

Amount collected in March = £430 x (23/24) = £385

Therefore, the answer is C) £385.

Smith and Johnson Have Expected Sales of £380,£340,£430 and £480