The Bass Company has projected the following quarterly sales amounts for the com
ID: 2736997 • Letter: T
Question
The Bass Company has projected the following quarterly sales amounts for the coming year: Required: (a) Accounts receivable at the beginning of the year are $270. 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)): (b) Accounts receivable at the beginning of the year are $270. 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 dollar amount (e.g., 32)): (c) Accounts receivable at the beginning of the year are $270. 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 dollar amount (e.g., 32)):Explanation / Answer
A)Since the answer is filled directly (b) is solved.And logic for cash collections is as follows.
for Quarter 1 - Opening receivables will be received and current quarter sales of 420 * 45/90 i.e,..,210.is recieved.so total cash collections will be 270 + 210 is 480 is received.simillary for other quarters and other credit periods.If it is 60 days credit period then it will be 420 * 30/90 because only for 30 days it has been received in the same quarter.
B)In $
c)
Sales 420 480 540 690 Beginning receivables 270 280 320 360 Sales 420 480 540 690 Cash collections Opening 270 280 320 360 Current quarter sales 140 160 180 230 (420*30/90) (480*30/90) (540*30/90) (690*30/90) Total cash collections 410 440 500 590 Closing receivables 280 320 360 460Related Questions
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