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Fifty percent of the Randall Companys sales are cash; the rest are on credit. Seventy percent of the credit sales are collected in the month
Fifty percent of the Randall Companys sales are cash; the rest are on credit. Seventy percent of the credit sales are collected in the month of sale, twenty percent in the month following sale, and five percent in the second month following sale. The remaining credit sales are expected to be uncollectible. The company's sales budget for the year included the following budgeted sales data.
January Feburary March
Total Sales $140,000 $120,000 $160,000
Total cash recipts in March would be budgeted to be:
A) $56,000
B) $136,000
C) $151,500
D) $160,000
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