The Bass Company has projected the following quarterly sales amounts for the com

Question

The Bass Company has projected the following quarterly sales amounts for the coming year: Required: Accounts receivable at the beginning of the year are $270. Bass has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollar amount (e.g., 32)): Accounts receivable at the beginning of the year are $270. Bass has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollar amount (e.g., 32)): Accounts receivable at the beginning of the year are $270. Bass has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollar amount (e.g., 32)):

Explanation / Answer

a. 45 day collection period: 45 / 90 = 1/2

b. 60-day collection period: 60 /90 = 2/3

c. 30-day collection period: 30 /90 = 1/3

Q1 Q2 Q3 Q4 Beginning receivable 270 255 270 300 Sales 510 540 600 750 Collections 525 525 570 675 270 + ( 510x 1/2) = 525 255 + ( 540x 1/2) = 525 270 + (600 x 1/2) = 570 300 + ( 750 x 1/2) = 675 Ending receivables 255 270 300 375

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