Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: $\begin{array}{ccccc}
&\text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 &\text { Mar. Year }\
&\text { (Actual) }&\text {(Budgeted) }&\text {(Budgeted) }&\text {(Budgeted) }\
\text { Credit sales } & \$ 51,000 & \$ 131,000 & \$ 146,000 & \$ 101,000 \
\text { Cash sales } & \$ 18,000 & \$ 16,000 & \$ 21,000 & \$ 3,000
\end{array}$ Based on the company's collection history, 43% of credit sales are collected in month of sale, and the remainder is collected in the following month. Cash collections in January from December credit sales would be:

Question

Quizplus · Accepted Answer

43% of December credit sales of $51,000 are collected in January: 0.43 x $51,000 = $21,930.

Oakton Furniture Provided the Following Information Relevant to Its Sales