Company A has noticed that it usually collects 50% of its credit sales in the month of sale and 50% of its credit sales in the month following the sale. The company has asked you to calculate its sales collections (excluding cash sales) for the month of February. The company sold the following amounts in the first three months of the year:

January: $500,000 of which $50000 were cash sales.

February: $600,000 of which $60000 were cash sales

March: $700,000 all of which there were no cash sales.

Question 20 options:

	$540,000
	$495,000
	$520,000
	$396,000

Answer rating: 100% (QA)

The correct option is B i Sales collections excluding cash sales for the mo... View the full answer