If the actual A/R at the end of February was $12,000 and projected sales in March are $50,000, where 70% of sales are on credit, 60% of credit sales are collected in the month of the sale, and 40% are collected in the month after the sale, what amount of cash is collected during March?
A) $36,000
B) $14,000
C) $48,000
D) $35,000

Question

Quizplus · Accepted Answer

Cash collected in March = cash sales + 60% of credit sales = (50,000 × 0.3) + (50,000 × 0.7 × 0.6) = 36,000

If the Actual A/R at the End of February Was