All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted. sales data for the company: January $50,000 February March April $30,000 Total sales $60,000 $40,000 What is the amount of cash that should be collected in March? A) $41,000 B) $51,000 C) $24,000 D) $37,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on
account are collected in the month of sale, 45% in the month following sale, and the
remainder are collected in the second month following sale. The following are budgeted
sales data for the company:
January
February
March
April
$30,000
Total sales
$50,000
$60,000
$40,000
What is the amount of cash that should be collected in March?
A) $41,000
B) $51,000
C) $24,000
D) $37,000
Transcribed Image Text:All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: January February March April $30,000 Total sales $50,000 $60,000 $40,000 What is the amount of cash that should be collected in March? A) $41,000 B) $51,000 C) $24,000 D) $37,000
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