1) Markham Company has completed its sales budget for the first quarter of Year 2....
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Accounting
1) Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below:
January
$
40,000
February
$
46,000
March
$
55,000
April
$
58,000
The company's past records show collection of credit sales as follows: 40% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
Group of answer choices
$49,600.
$55,000.
$42,400.
$51,400.
B) Compton Company expects the following total sales:
Month
Sales
March
$
27,000
April
$
17,000
May
$
27,000
June
$
22,000
The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is:
Group of answer choices
$12,775.
$11,340.
$19,740.
$20,250.
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