Question
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
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
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
