The Espresso Cart Has Had the Following Pattern of Espresso

question 18

Essay

The Espresso Cart has had the following pattern of espresso sales over the last two weeks:
$\begin{array}{llll}\text { Week } 1&&\text { Week } 2\\\text { Monday } & 873 & \text { Monday } & 91 \\\text { Tuesday } & 904 & \text { Tuesday } & 859 \\\text { Wednesday } & 911 & \text { Wednesday } & 90 \\\text { Thursday } & 887 & \text { Thursday } & 900 \\\text { Friday } & 899 & \text { Friday } & ?\end{array}$ What is the forecast for Friday's sales using a three-day moving average?

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Definitions:

Specific Time Periods

Specific time periods refer to distinct, defined durations used for financial reporting, planning, and analysis, such as quarters or fiscal years.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively.

Recorded When Incurred

An accounting principle that stipulates expenses should be recognized in the financial statements in the period they are incurred, regardless of when the cash payments are made.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before financial statements are prepared.