32. Brown Company estimates that monthly sales will be as follows. January February March P100,000 150,000 180,000 Historical trends indicate that 40% of sales are collected during the month of sale, 50% are collected in the month following the sale, and 10% are collected two months after the sale. Brown's accounts receivable balance as of December 31 totals P80,000 (P72,000 from December's sales and P8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is a. P76,800. b. P84,000. c. P108,000. d. P133,000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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32. Brown Company estimates that monthly sales will be as follows.
January
February
March
P100,000
150,000
180,000
Historical trends indicate that 40% of sales are collected during the month of sale, 50% are
collected in the month following the sale, and 10% are collected two mon ths after the sale. Brown's
accounts receivable balance as of December 31 totals P80,000 (P72,000 from December's sales and
P8,000 from November's sales). The amount of cash Brown can expect to collect during the month
of January is
a. P76,800.
b. P84,000.
c. P108,000.
d. P133,000.
Transcribed Image Text:32. Brown Company estimates that monthly sales will be as follows. January February March P100,000 150,000 180,000 Historical trends indicate that 40% of sales are collected during the month of sale, 50% are collected in the month following the sale, and 10% are collected two mon ths after the sale. Brown's accounts receivable balance as of December 31 totals P80,000 (P72,000 from December's sales and P8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is a. P76,800. b. P84,000. c. P108,000. d. P133,000.
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