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Ortiz Company estimates the following sales for 2021: Q1 - 200 units Q2 - 260 units Q3 - 330 units Q4 - 300 units All
Ortiz Company estimates the following sales for 2021:
Q1 - 200 units
Q2 - 260 units
Q3 - 330 units
Q4 - 300 units
All sales are on account, and each unit sells for $35. Ortiz Company collects 90% of sales in the quarter of the sale and 10% in the following quarter. At January 1, 2021, the balance in Accounts Receivable is $950.
What are expected cash collections in Q1 of 2021?
- A.
$7,000
- B.
$6,300
- C.
$5,350
- D.
$7,250
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