Baker Industries Has a 30-Day Accounts Receivable Period

question 1

Multiple Choice

Baker Industries has a 30-day accounts receivable period.The estimated quarterly sales for this year,starting with the first quarter,are $1,450,$1,620,$1,740,and $2,250,respectively.How much does the firm expect to collect in the fourth quarter? Assume a 360-day year.

• A)$2,010
• B)$1,980
• C)$2,080
• D)$1,960
• E)$2,120

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Definitions:

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.

Warranty Claims

Requests made by customers for the repair or replacement of products under the terms of a warranty agreement.

AASB 137

The Australian Accounting Standards Board standard that deals with Provisions, Contingent Liabilities, and Contingent Assets.

Provisions

Liabilities of uncertain timing or amount, recorded to account for future obligations or potential losses.