Acme Company's budgeted monthly sales for the first quarter are as follows: January February March $201,000 For its credit sales, Acme collects 40% in the month of the sale, 40% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on January 1 is $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales. What are the total budgeted cash collections during the month of January? $187,000 $100,000 Cash Sales $30,000 $35,000 $41,000 O $143,000 Credit Sales $130,000 $150,000 $110,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Acme Company's budgeted monthly sales for the first quarter are as follows:
January
February
March
$201,000
For its credit sales, Acme collects 40% in the month of the sale, 40% in the month
following the sale, and 20% in the second month following the sale. The accounts
receivable balance on January 1 is $81,000, of which $60,000 represents uncollected
December sales and $21,000 represents uncollected November sales. What are the total
budgeted cash collections during the month of January?
$187,000
$100,000
Cash Sales
$30,000
$35,000
$41,000
O $143,000
Credit Sales
$130,000
$150,000
$110,000
Transcribed Image Text:Acme Company's budgeted monthly sales for the first quarter are as follows: January February March $201,000 For its credit sales, Acme collects 40% in the month of the sale, 40% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on January 1 is $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales. What are the total budgeted cash collections during the month of January? $187,000 $100,000 Cash Sales $30,000 $35,000 $41,000 O $143,000 Credit Sales $130,000 $150,000 $110,000
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