Reference no: EM132972539

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