As of January 1, the Joyner Company had an account receivable of $50,000. The sales for January,

Question:

As of January 1, the Joyner Company had an account receivable of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each month sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from and for cash sales) in the month of January?
a. $74,000
b. $110,000c. $71,600d. $131,600
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...