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All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in the month of sale, 25% in the month
All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data for the company:
January | February | March | April | |
Total sales | $414,000 | $646,000 | $626,000 | $798,000 |
Cash receipts in April are expected to be:
a. $478,800
b. $635,300
c. $699,900
d. $221,100
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