Question
Test Company projected the following sales for the first six months of the year. Total sales January $250,000 February 300,000 March 280,000 April 310,000 May
Test Company projected the following sales for the first six months of the year.
| Total sales |
January | $250,000 |
February | 300,000 |
March | 280,000 |
April | 310,000 |
May | 320,000 |
June | 300,000 |
Of the total sales, 10% are cash sales, and the remaining sales are on credit. Credit sales are collected: 40% in the month of sale, 50% in the first month following the sale, 5% in the second month following the sale, and the remaining credit sales are uncollectible.
Determine total cash collections for March.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started