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Problem - Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors' invoiced $200,000 to clients.
Projected revenues for the first six months of 2014 are given below:
Month - Revenue
January - 180,000
February - 215,000
March - 220,000
April - 218,000
May - 240,000
June - 255,000
Required - What is the expected Accounts Receivable balance at March 31, 2014?
A. $198,000
B. $280,500
C. $262,500
D. $205,000.
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