Response to the following problem:
Diamond Window Corporation's sales, half of which are for cash, over the past three months were:
March $140,000
April $240,000
May $160,000
a. Estimate Diamond's cash receipts in May if the company's collection period is 60 days.
b. Estimate Diamond's cash receipts in May if the company's collection period is 45 days.
c. What would be the May balance of Accounts Receivable for Diamond Window if the company's collection period is 60 days? 45 days?