January February March April Credit Sales $350,000 $300,000 $200,000 $550,000 Cash Sales $70,000 $90,000 $80,000 $70,000 40% of credit sales are collected in the month of sale, 50% in the month after the sale, and 10% of credit sales are collected the second month after the month of sale. There are no bad debts. Budgeted cash receipts for April would be O $420,000 O $620,000 O $310,000 O $360,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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January
February
March
April
Credit Sales
$350,000
$300,000
$200,000
$550,000
Cash Sales
$70,000
$90,000
$80,000
$70,000
40% of credit sales are collected in the month of sale, 50% in the month after the sale, and
10% of credit sales are collected the second month after the month of sale. There are no bad
debts. Budgeted cash receipts for April would be
O $420,000
O $620,000
O $310,000
O $360,000
Transcribed Image Text:January February March April Credit Sales $350,000 $300,000 $200,000 $550,000 Cash Sales $70,000 $90,000 $80,000 $70,000 40% of credit sales are collected in the month of sale, 50% in the month after the sale, and 10% of credit sales are collected the second month after the month of sale. There are no bad debts. Budgeted cash receipts for April would be O $420,000 O $620,000 O $310,000 O $360,000
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