### Understanding Sales Collection for Gaylord Corporation**Sales Collection Schedule:**Gaylord Corporation collects its sales on account over a period of three months:- 35% of sales are collected in the month of the sale.- 45% are collected in the month following the sale.- The remaining 20% are collected in the second month following the sale.**Budgeted Sales Data:**- **January:** $50,000- **February:** $60,000- **March:** $40,000- **April:** $30,000**Objective:**Calculate the total cash that should be collected in March.**Breakdown of Collections:**1. **From January Sales in March (Second month following):** - 20% of January sales: $50,000 x 20% = $10,0002. **From February Sales in March (Month following):** - 45% of February sales: $60,000 x 45% = $27,0003. **From March Sales in March (Month of sale):** - 35% of March sales: $40,000 x 35% = $14,000**Total Cash Collection in March:**- $10,000 (January) + $27,000 (February) + $14,000 (March) = $51,000**Answer:**The amount of cash that should be collected in March is **$51,000**.**Multiple Choice Options:**- A) $41,000- B) $51,000- C) $24,000- D) $37,000**Correct Option:** **B) $51,000**

All the sales of Gaylord Corporation's are on credit. 35% of sales on account are received in same…

All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted. sales data for the company: January $50,000 February March April $30,000 Total sales $60,000 $40,000 What is the amount of cash that should be collected in March? A) $41,000 B) $51,000 C) $24,000 D) $37,000

All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted. sales data for the company: January $50,000 February March April $30,000 Total sales $60,000 $40,000 What is the amount of cash that should be collected in March? A) $41,000 B) $51,000 C) $24,000 D) $37,000

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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