A firm has forecasted sales of $8,000 in January,$12,000 in February,and $11,000 in March.All sales are on credit.40% is collected the month of sale and the remainder the following month.How much is collected from accounts receivable in February?

Question

Quizplus · Accepted Answer

In February, the firm will collect 40% of January sales ($8,000 x 0.40 = $3,200) and 60% of February sales ($12,000 x 0.60 = $7,200). The total collected in February is $3,200 + $7,200 = $10,400, which is closest to option B ($9,600).

A Firm Has Forecasted Sales of $8,000 in January,$12,000 in February,and