None Hi Tech, Inc. expects to have sales of $600 in the first quarter ofthe year. The accounts receivable balance was $400. Assumingthat they have a collection period of 45 days, what is theapproximate beginning balance (of accounts receivable) for thesecond quarter. Show your work.

Step 1: Define Average Collection PeriodAverage collection period means the number of days which the…

Answered: Hi Tech, Inc. expects to have sales of…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 5MC

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Hi Tech, Inc. expects to have sales of $600 in the first quarter of the year. The accounts receivable balance was $400. Assuming that they have a collection period of 45 days, what is the approximate beginning balance (of accounts receivable) for the second quarter. Show your work.