Company X expects the following sales in March: Cash Sales Credit Sales $192,500 $650,000 The company collects credit sales as follows: 70% in the month of sale, 25% in the first month after sale, and 5% in the second month after sale. The accounts receivable balance at the beginning of March was $152,500; consisting of $17,500 related to January sales and $135,000 related to February sales. How much cash ($) will be collected from customers in March? O a 583,500 O b. None of the given answers O. 755,000 O d. 777,500 O e. 607,500

Company X expects the following sales in March: Cash Sales Credit Sales $192,500 $650,000 The company collects credit sales as follows: 70% in the month of sale, 25% in the first month after sale, and 5% in the second month after sale. The accounts receivable balance at the beginning of March was $152,500; consisting of $17,500 related to January sales and $135,000 related to February sales. How much cash ($) will be collected from customers in March? O a 583,500 O b. None of the given answers O. 755,000 O d. 777,500 O e. 607,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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