JumbotronInc.hadsalesof$8,000inNovember,$14,000inDecember,andprojects salesof$10,000forJanuary,$12,000forFebruary,and$8,000forMarch.Thefirm'scostof goodssoldeverymonthisequalto70%ofthenextmonth'ssales.Thefirmcollectsits receivablesin60daysandpaysitspayablesin30days.ThefirmbeginsJanuary1with $10,000incash.Allsalesandpurchasesareoncredit. WhatisJumbotron'saccountsreceivableattheendofJanuary? A.$10,000 B.$14,000 C.$22,000 D. $24,000 E.$32,000 AjaxCorporationestimatesthatforcreditsales,20%ofcashisreceivedinthemonthof sale;60%inthemonthafterthesale,and15%secondmonthafterthesale.Theremainderis nevercollected.Ajaxhadcreditsalesof$23,000inJanuary;$23,000inFebruary,and $19,000inMarch.Giventhefollowinginformation,determinethecashcollectionsfor March. A.$18,500 B. $20,600 C.$22,700 D.$24,800 E.$26,900 Please explain
JumbotronInc.hadsalesof$8,000inNovember,$14,000inDecember,andprojects
salesof$10,000forJanuary,$12,000forFebruary,and$8,000forMarch.Thefirm'scostof
goodssoldeverymonthisequalto70%ofthenextmonth'ssales.Thefirmcollectsits
receivablesin60daysandpaysitspayablesin30days.ThefirmbeginsJanuary1with
$10,000incash.Allsalesandpurchasesareoncredit.
WhatisJumbotron'saccountsreceivableattheendofJanuary?
A.$10,000
B.$14,000
C.$22,000
D.$24,000
E.$32,000
AjaxCorporationestimatesthatforcreditsales,20%ofcashisreceivedinthemonthof
sale;60%inthemonthafterthesale,and15%secondmonthafterthesale.Theremainderis
nevercollected.Ajaxhadcreditsalesof$23,000inJanuary;$23,000inFebruary,and
$19,000inMarch.Giventhefollowinginformation,determinethecashcollectionsfor
March.
A.$18,500
B.$20,600
C.$22,700
D.$24,800
E.$26,900
Please explain
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Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
