Assume that a company has the following accounts receivable collection pattern: Month of sale 40% Month following
Question:
Assume that a company has the following accounts receivable collection pattern:
Month of sale 40%
Month following sale 60%
All sales are on credit. If credit sales for January and February are $100,000 and $200,000, respectively, the cash collections for February are
a. $140,000.
b. $300,000.
c. $120,000.
d. $160,000.
e. $80,000.
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The cash collections for February are 120000 To calculate this we ...View the full answer
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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