Asked by VALERIA BARDALES on Jul 15, 2024
Verified
T.J. Waxham's has a beginning receivables balance on January 1 of $1,460. Sales for January through April are $1,200, $1,450, $1,580, and $1,640, respectively. The accounts receivable period is 30 days. How much did the firm collect in the month of April? Assume that a year has 360 days.
A) $1,200
B) $1,450
C) $1,460
D) $1,580
E) $1,640
Receivables Balance
The complete amount of financial liabilities customers hold towards a company for supplied goods or services awaiting payment.
Accounts Receivable Period
The amount of time it takes for a company to collect payment from its customers after a sale has been made.
- Interpret and calculate the impact of sales, cost of goods sold, and collections/purchase terms on firm’s cash flow.
Verified Answer
MT
Mason TwittyJul 20, 2024
Final Answer :
D
Explanation :
Given the accounts receivable period is 30 days, the firm collects receivables from sales made 30 days prior. Therefore, in April, the firm would collect on sales made in March, which amounts to $1,580.
Learning Objectives
- Interpret and calculate the impact of sales, cost of goods sold, and collections/purchase terms on firm’s cash flow.
Related questions
Ajax Corporation Estimates That for Credit Sales, 20% of Cash ...
KAB Incorporated, a Small Retail Store, Had the Following Results ...
Bonkowski Corporation Makes One Product and Has Provided the Following ...
KAB Incorporated, a Small Retail Store, Had the Following Results ...
A Building with a Book Value of $54,000 Is Sold ...