The A/R related to January and February will be paid by April and there will be no outstanding amount with respect to those sales.
For Sales made in March there will be an outstanding amount of 15% as the 60% will be paid in March and 25% will be paid in April.
The 15% on March Sales = 15% * 280,000 = 42,000
For sales made in April there will be an outstanding amount of 40% as only 60% was made in April.
The 40% on April Sales = 0.40* 260,000 = 104,000
Therefore the remaining balance in A/R is 42,000 + 104,000 = 146,000.
Please note that he 2% discount mentioned is information that is not used for computation as it works only when full amount is paid however there is no data on that, so ignore it.
I hope it explains.
Thanks,
Chaya
Original Message:
Sent: 05-29-2017 01:18 AM
From: Chithra Rajasekharan
Subject: CMA Pop Quiz - Q173
can you explain this answer.
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Chithra Rajasekharan
Accountant
Ajay William
Dubai
United Arab Emirates
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Original Message:
Sent: 03-31-2017 01:56 PM
From: Morgan Greenleaf
Subject: CMA Pop Quiz - Q173
Are you preparing for the CMA exam? Take our CMA Pop Quiz!
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Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
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