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Martinique's Has a Collection Period of 60 Days

Question 73

Multiple Choice

Martinique's has a collection period of 60 days.Sales for the next calendar year are estimated at $1,550,$1,230,$1,780 and $2,800,respectively,by quarter 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 $1,133.33 in Quarter 2.
B) The accounts receivable balance at the beginning of Quarter 4 will be $1,066.67.
C) The firm will collect $593.33 from Quarter 2 sales in Quarter 3.
D) The firm will have an accounts receivable balance of $1,866.67 at the end of the year.
E) The firm will collect a total of $1,033.33 in Quarter 4.

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