The Morning Jolt Coffee Company has projected the following quarterly sales amou
ID: 2743856 • Letter: T
Question
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:
Accounts receivable at the beginning of the year are $440. Morning Jolt has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)):
Recalculate the cash collections with a collection period of 60 days. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
Recalculate the cash collections with a collection period of 30 days. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
Q1 Q2 Q3 Q4 Sales $ 850 $ 880 $ 960 $ 930Explanation / Answer
a)
Particulars
Q1
Q2
Q3
Q4
Beginning receivables
$ 440
Sales
$ 850
$ 880
$ 960
$ 930
Cash collections*(Balance Figure)
$ 865
$ 440
$ 480
$ 465
Ending receivables
$ 425
$ 440
$ 480
$ 465
b)
Particulars
Q1
Q2
Q3
Q4
Beginning receivables
$ 440
Sales
$ 850
$ 880
$ 960
$ 930
Cash collections*(Balance Figure)
$ 723
$ 293
$ 320
$ 310
Ending receivables
$ 567
$ 587
$ 640
$ 620
c)
Particulars
Q1
Q2
Q3
Q4
Beginning receivables
$ 440
Sales
$ 850
$ 880
$ 960
$ 930
Cash collections*(Balance Figure)
$ 1,007
$ 587
$ 640
$ 620
Ending receivables
$ 283
$ 293
$ 320
$ 310
Particulars
Q1
Q2
Q3
Q4
Beginning receivables
$ 440
Sales
$ 850
$ 880
$ 960
$ 930
Cash collections*(Balance Figure)
$ 865
$ 440
$ 480
$ 465
Ending receivables
$ 425
$ 440
$ 480
$ 465