Reference no: EM132974370

Problem 1: Vicor, a movie production firm located in Makati City, bills its clients on the first of the month. For example, any sale made in the month of July is billed August 1 and is due September 1. Clients traditionally pay as follows: 50% by the end of the first month , 40% by the end of the second month , 8% by the end of the third month , and 2% default on their bills. If accounts receivable are collected as anticipated, what is the last month in which January sales will be collected?

First-Quarter Sales                     Second-Quarter Estimated Sales

January        February         March               April              May             June

Php 44,000    Php 37,000    Php 48,000       Php 49,500   Php 41,000   Php 31,500

Select one:

a. June

b. May

c. April

d. March