Question
ABC Company has sales of $600,000 in January. Past experience suggests that 40% of sales is cash sale. Of its credit sales, 55% is paid
ABC Company has sales of $600,000 in January. Past experience suggests that 40% of sales is cash sale. Of its credit sales, 55% is paid in the month following the sale, and 40% is paid in the second month following the sale. The rest is bad debt. The amount of cash collection from January sales in February is:
a.$330,000
b.$198,000
c.$144,000
d.$132,000
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
