TB MC Qu$.8-77($Algo$)$ The LaGrange Corporation had the...

The LaGrange Corporation had the following budgeted sales for the first half of the current year:

Cash Sales Credit Sales

January $$40,000$ $$140,000$

February $$45,000$ $$160,000$

March $$42,000$ $$120,000$

April $$37,000$ $$122,000$

May $$47,000$ $$190,000$

June $$70,000$ $$160,000$

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on sales:

$30\%$ in month of sale

$35\%$ in month following sale

$35\%$ in second month following sale

The accounts receivable balance on January $1$ of the current year was $$92,000,$ of which $$70,000$ represents uncollected December sales and $$22,000$ represents uncollected November sales.

The total cash collected during January by LaGrange Corporation would be:

Multiple Choice

$$212,000$

$$189,000$Incorrect

$$100,000$

$$139,000$