Smith and Johnson have expected sales of $2,380,$2,840,$4,430,and $4,480 for the months of January through April,respectively.The accounts receivable period is 15 days.How much did the firm collect in the month of March? Assume a 30-day month.
A)$2,215
B)$4,160
C)$3,635
D)$3,430
E)$1,420

Question

Quizplus · Accepted Answer

To find out the amount collected for each month, we need to divide the expected sales by the number of days in the month and then multiply by the number of days in the accounts receivable period.

For January: ($2,380/31 days) x 15 days = $1,147.74
For February: ($2,840/28 days) x 15 days = $1,528.57
For March: ($4,430/31 days) x 15 days = $2,131.45
For April: ($4,480/30 days) x 15 days = $2,112

Therefore, the firm collected $2,131.45 in the month of March. The answer is C.

Smith and Johnson Have Expected Sales of $2,380,$2,840,$4,430,and $4,480 for the Months