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ALPHA, Inc. sells all of its products on credit. Purchases are 6 0 % of the sales for the following quarter. The firm uses a

ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations.
The financial manager of the firm provides the following relevant information:
Accounts receivable period 37 days
Inventory period 51 days
Accounts payable period 42 days
Account Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales $7,000 $6,000 $8,000 $9,000
Wages $2,000 $1,500 $2,000 $2,500
Overhead expenses $500 $400 $500 $600
Dividends $125 $125 $125 $125
Interest expense $350 $150 $200 $300
What is the accounts payable balance at the beginning of Quarter 2?
Question 6 options:
$1,420
$1,680
$1,920
$2,240
$2,560

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