Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February 2014 are expected to be:

Question

Mathematics

Armani Fry

26 July, 15:21

Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February 2014 are expected to be:

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Answers (1)

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Howard Moyer · Answer 1

Therefore, option C is correct

Step-by-step explanation:

Budgeted cash receipts for February = 60000 + 303800*0.40 + 274400*.60

= 60000 + 121520 + 164640

= 346160