Review the following sales information. How much cash will the company collect in February?
January sales are $ 60,000
February sales are $ 70,000
80% of sales are made on a cash basis
20% of sales are collected after 30 days

Question

Quizplus · Accepted Answer

In February, the company will collect 80% of February sales in cash ($70,000 * 80% = $56,000) and 20% of January sales ($60,000 * 20% = $12,000) from credit sales made in January. Total cash collected in February is $56,000 + $12,000 = $68,000.

Review the Following Sales Information