Browning Company's sales budget shows the following expected total sales: Month Sales $17,000 January February $21,000 $26,000 $49,000 March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $35,833. $25,725 $35,200. $21,165

Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Browning Company's sales budget shows the following expected total sales:
Month
Sales
$17,000
January
February
$21,000
$26,000
$49,000
March
April
The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be:
Multiple Choice
$35,833.
$25,725
$35,200.
$21,165
Transcribed Image Text:Browning Company's sales budget shows the following expected total sales: Month Sales $17,000 January February $21,000 $26,000 $49,000 March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $35,833. $25,725 $35,200. $21,165
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