23

Johnson Equipment expects the following sales in January, February, and March:

	Cash Sales	Credit Sales
January	$50,000	$250,000
February	$45,000	$240,000
March	$85,000	$325,000

The controller has determined that the company collects credit sales as follows: 60% in the month of sale, 35% in the first month after sale, and 5% in the second month after sale. How much cash will be collected from customers in March?

a-$291,500

b-$376,500

c-$410,000

d-None of these answer choices are correct