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ABC company began operations on January 1. Its credit sales for the first quarter of operations were as follows: Month Credit Sales January $200,000 February
ABC company began operations on January 1. Its credit sales for the first quarter of operations were as follows:
Month | Credit Sales |
January | $200,000 |
February | $150,000 |
March | $100,000 |
Throughout the quarter, the firms credit customers payments pattern was as follows: 20% paid in the month of sale, 50% paid in the first month following the sale, and 30% paid in the second month following the sale.
Assuming a quarter is 90 days, use the information to compute the following:
1) Receivables balance at the end of the quarter.
2) ADS for Q1.
3) DSO for Q1.
please hurry and show work
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