A firm’s expected sales as shown in the table below. company’s purchases amount to 70% of the previous month’s sales. Purchases are paid a month after incurred. Month January February March April Sales $ 60,000 $ 68,000 $ 74,000 $ 66,000 Based on the information provided, what amount is paid for Purchases in March? A) $24,000 B) $29,600 C) $26,400 D) Answer not shown

A firm’s expected sales as shown in the table below. company’s purchases amount to 70% of the previous month’s sales. Purchases are paid a month after incurred. Month January February March April Sales $ 60,000 $ 68,000 $ 74,000 $ 66,000 Based on the information provided, what amount is paid for Purchases in March? A) $24,000 B) $29,600 C) $26,400 D) Answer not shown

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PA: Fitbands estimated sales are: What are the balances in accounts receivable for January, February,...

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Receivables Management

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7. A firm’s expected sales as shown in the table below. company’s purchases amount to 70% of the previous month’s sales. Purchases are paid a month after incurred. Month January February March April Sales $ 60,000 $ 68,000 $ 74,000 $ 66,000 Based on the information provided, what amount is paid for Purchases in March?

A) $24,000

B) $29,600

C) $26,400

D) Answer not shown

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Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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