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Sequoia Furniture Companys sales over the past three months, half of which are for cash, were as follows: March April May $ 402,000 $ 652,000
Sequoia Furniture Companys sales over the past three months, half of which are for cash, were as follows:
March | April | May |
---|---|---|
$ 402,000 | $ 652,000 | $ 522,000 |
- Assume that Sequoias 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?
- Now assume that Sequoias collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
\begin{tabular}{|l|l|} \hline 1. Collection period is 60 days & \\ \hline Cash receipts & $ \\ \hline Accounts receivable balance & 462,000 \\ \hline 2. Collection period is 45 days & \\ \hline Cash receipts & \\ \hline Accounts receivable balance & \\ \hline \end{tabular}
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