ABC Company has sales of $600,000 in January. Past experience suggests that 40% of sales is cash sale. Of its credit sales, 55% is paid in the month following the sale, and 40% is paid in the second month following the sale. The rest is bad debt. The amount of cash collection from January sales in February is:

a.$330,000

b.$198,000

c.$144,000

d.$132,000

Answer rating: 100% (QA)

To calculate the amount of cash collected from January sales in February we need to cons... View the full answer