Question
Mikhail Corporation has the following sales forecasts for the first three months of 2021: Month Sales January $36,000 February 24,000 March 40,000 Sixty-five percent of
- Mikhail Corporation has the following sales forecasts for the first three months of 2021:
| Month | Sales |
| January | $36,000 |
| February | 24,000 |
| March | 40,000 |
Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following
month.
Accounts receivable balance (January 1, 2021) $16,000 Cash balance (January 1, 2021) 12,000
How much cash would be collected in March from sales?
a. $32,000
b. $58,400
c. $48,000
d. $34,400
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Financial Accounting
Authors: W. Steven Albrecht, James D. Stice, Earl Kay Stice, K. Fred Skousen, Albrecht S.E.
8th Edition
0324066708, 978-0324066708
