8.

9.

Woodpecker Co. has $325,000 in accounts recervable on January 1. Budgeted sales for January are $860,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The Jamuary cash collections from sales are a. $812,000 b. $688,000 c. $984,000 d. $1,013,000 As of January 1 of the current year, Gunner Company had accounts recervable of $50,000. The sales for January, February, and March were $120,000, $140,000, and $160,000, respectively. Of each month's sales, 20% are for cach Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remanang 40% collected in the following month. What is the accounts receivable balance as of March 31 ? a. $51,200 b. $48,000 c. $72,000 d. $58,720