The Morning Jolt Coffee Company has projected the following quarterly sales amou
ID: 2768672 • 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 $350. The company 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 $ 760 $ 790 $ 870 $ 950Explanation / Answer
a. When the collection period is 45. The ending receivables will be 45/90 =0.5 since there are 90 days in a quarter. So the ending sales will be 0.5* Sales
The table is as shown below:
b. The table is as shown below. Ending recivables = 60/90 * Sales
c. the table is as shown below: Ending receivable = 30/90* sales
Q1 Q2 Q3 Q4 Beginning receivables 350 360 395 435 Sales 760 790 870 950 Cash collections 730 755 830 910 Ending receivables 380 395 435 475