Question - Johnson Equipment expects the following sales in January, February, and March:
|
|
Cash Sales
|
Credit Sales
|
|
January
|
$50,000
|
$250,000
|
|
February
|
$45,000
|
$240,000
|
|
March
|
$85,000
|
$325,000
|
The controller has determined that the company collects credit sales as follows: 60% in the month of sale, 35% in the first month after sale, and 5% in the second month after sale. How much cash will be collected from customers in March?
a- $291,500
b- $376,500
c- $410,000
d- None of these answer choices are correct