Accounts receivable at the beginning of the year are $450. Bass has a 45-day col

Question

Accounts receivable at the beginning of the year are $450. Bass has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollar amount (e.g., 32)):

Accounts receivable at the beginning of the year are $450. Bass has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollaramount (e.g., 32)):

Accounts receivable at the beginning of the year are $450. Bass has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollaramount (e.g., 32)):

The Bass Company has projected the following quarterly sales amounts for the coming year:

Explanation / Answer

a) Because firm has a 45-day collection period, only those sales made in the first 45 days of the quarter will be collected in the same quarter. Total cash collections in the first quarter will thus equal 1 2 of sales plus beginning receivables, or 1 2 *690 + 450 = 795

Ending receivable = 1/2 * sales = 690/2 = 345

b)

Because firm has a 60-day collection period, only those sales made in the first 60 days of the quarter will be collected in the same quarter. Total cash collections in the first quarter will thus equal 1 3 of sales plus beginning receivables, or 1 3 *690 + 450 = 680

Ending receivable = 2/3 * sales = 690*2/3 = 460

c)

Because firm has a 30-day collection period, only those sales made in the first 30 days of the quarter will be collected in the same quarter. Total cash collections in the first quarter will thus equal 2 3 of sales plus beginning receivables, or 2 3 *690 + 450 = 910

Ending receivable = 1/3 * sales = 690*1/3 = 230

Q1 Q2 Q3 Q4   Beginning receivables 450 345 36 390   Sales 690 72 780 930   Cash collections 795 381 426 855   Ending receivables 345 36 390 465

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.