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21 June, 20:24

Breakwater Aquatics has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the first quarter, are $6,800, $7,100, $8,200, and $6,400, respectively. What is the accounts receivable balance at the beginning of the third quarter?

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  1. 21 June, 20:28
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    The accounts receivable balance at the beginning of the third quarter is $3,550

    Explanation:

    For computing the account receivable balance, first, we have to compute the credit sale per day, and then multiply with the number of days

    In mathematically,

    Credit sale per day = (Estimated second Quarter Sales) : (accounts receivable period up to second quarter)

    = $7,100 : 90 days

    = 78.89

    Now the account receivable balance equals to

    = Credit sales per day * accounts receivable period

    = 78.89 days * 45 days

    = $3550

    Since the question is asking about the beginning of the third quarter so we considered second quarter sales
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