Question

abc, incorporated, has a beginning receivables balance on january 1st of $730. sales for january through april are $490, $520, $600 and $620, respectively. the accounts receivable period is 60 days. how much did the firm collect in the month of march? assume that a year has 360 days

Answer 1

The firm collected approximately $575.98 in the month of March.

Step-by-step explanation:

To determine how much the firm collected in the month of March, we need to calculate the average daily sales for that month. The accounts receivable period is 60 days, so the average daily sales can be calculated by dividing the total sales for January through April by 120 (60 days x 2).

The total sales for those months are $490 + $520 + $600 + $620 = $2,230. Therefore, the average daily sales for March are $2,230 / 120 = $18.58.

To find out how much the firm collected in March, we can multiply the average daily sales for March by the number of days in that month.

Assuming a year has 360 days, March has 31 days.

Multiplying the average daily sales of $18.58 by 31, we get $18.58 x 31 = $575.98.

Therefore, the firm collected approximately $575.98 in the month of March.