Johnson Equipment expects the following sales in January,February,and March:
The controller has determined that the company collects credit sales as follows: 60% in the month of sale,35% in the first month after sale,and 5% in the second month after sale.How much cash will be collected from customers in March?
A) $291,500
B) $376,500
C) $410,000
D) None of these ans choices are correct.

Question

Johnson Equipment expects the following sales in January,February,and March:
  The controller has determined that the company collects credit sales as follows: 60% in the month of sale,35% in the first month after sale,and 5% in the second month after sale.How much cash will be collected from customers in March? 
A) $291,500 
B) $376,500 
C) $410,000 
D) None of these ans choices are correct.

Quizplus · Accepted Answer

$85,000 + $325,000 x 60% + $240,000 x 35% + $250,000 x 5% = $376,500

Johnson Equipment Expects the Following Sales in January,February,and March