Question
BarnBurner Music, a music publishing firm located in Tennessee, bills its clients on the first of the month. For example, any sale made in the
BarnBurner Music, a music publishing firm located in Tennessee, bills its clients on the first of the month. For example, any sale made in the month of July is billed August 1 and is due September 1. Clients traditionally pay as follows: 50% at the end of the first month, 40% at the end of the second month, 8% at the end of the third month, and 2% default on their bills. If accounts receivable are collected as anticipated, what is the last month in which January billings will be collected?
First Quarter Actual Billings | Second Quarter Anticipated Billings | ||||
January | February | March | April | May | June |
$88,000 | $74,000 | $96,000 | $99,000 | $82,000 | $63,000 |
Question 33 options:
| March |
| April |
| May |
| June |
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