2

Sequola Furniture Company's sales over the past three months, half of which are for cash, were as follows: 1. Assume that Sequola's collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 2. Now assume that Sequola's collection period is 45 days. What would be its cash recelpts in May? What would be its accounts recelvable balance at the end of May