A company has the following collection pattern: month of sale 40%; month following sale, 60%. If credit sales for January and February are $100,000, respectively, the cash collections for February are $140,000 $300,000 $120,000 $160,000 $80,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter7: Budgeting
Section: Chapter Questions
Problem 9EA: Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale,...
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  • A company has the following collection pattern: month of sale 40%; month following sale, 60%. If credit sales for January and February are $100,000, respectively, the cash collections for February are
  1. $140,000
  2. $300,000
  3. $120,000
  4. $160,000
  5. $80,000
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