Martinique's Boutique Has a 45 Day Collection Period

question 3

Multiple Choice

Martinique's Boutique has a 45 day collection period.Sales for the next four quarters are estimated at $1,200,$1,100,$2,300,and $1,800,respectively,starting with the first quarter of the year.Given this information,which one of the following statements is correct? Assume a 360 day year.

• A)The firm will collect $1,175 in Quarter 2.
• B)The accounts receivable balance at the beginning of Quarter 4 will be $950.
• C)The firm will collect $600 from Quarter 2 sales in Quarter 3.
• D)The firm will have an accounts receivable balance of $900 at the end of the year.
• E)The firm will collect a total of $2,100 in Quarter 4.

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Definitions:

Olfactory

Pertaining to the sense of smell, involving the olfactory system which detects and identifies different odors.

Impaired Sense Of Smell

A reduced or distorted ability to detect or differentiate odors, known medically as anosmia or hyposmia.

Cranial Nerve

One of twelve nerves that originate in the brain and control motor and sensory functions of the head and neck.

Trigeminal

Relating to the trigeminal nerve, which is the fifth cranial nerve responsible for sensory perception in the face and motor functions such as biting and chewing.