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All of Ellie Corporation's sales are on account. 40% of the sales on account are collected in the month of sale, 40% in the month following sale, and 20% are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 February $60,000 What is the amount of cash that should be collected in March? ○ $60,000 ○ $40,000 ○ $50,000 ○ $55,000 March $40,000 April $30,000

All of Ellie Corporation's sales are on account. 40% of the sales on account are collected in the month of sale, 40% in the month following sale, and 20% are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 February $60,000 What is the amount of cash that should be collected in March? ○ $60,000 ○ $40,000 ○ $50,000 ○ $55,000 March $40,000 April $30,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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All of Ellie Corporation's sales are on account. 40% of the sales on account are collected in the month of sale, 40% in the month following sale, and 20% are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 February $60,000 What is the amount of cash that should be collected in March? ○ $60,000 ○ $40,000 ○ $50,000 ○ $55,000 March $40,000 April $30,000
Transcribed Image Text:All of Ellie Corporation's sales are on account. 40% of the sales on account are collected in the month of sale, 40% in the month following sale, and 20% are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 February $60,000 What is the amount of cash that should be collected in March? ○ $60,000 ○ $40,000 ○ $50,000 ○ $55,000 March $40,000 April $30,000
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