Question
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below:
| January | $ | 38,000 | |
| February | $ | 44,000 | |
| March | $ | 53,000 | |
| April | $ | 56,000 |
The company's past records show collection of credit sales as follows: 38% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below:
| January | $ | 38,000 | |
| February | $ | 44,000 | |
| March | $ | 53,000 | |
| April | $ | 56,000 |
The company's past records show collection of credit sales as follows: 38% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
$40,280
$49,580
$53,000
$47,420
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Introduction To Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
4th Edition
0073379352, 9780073379357
