Livingston Manufacturing will open a new store on January 1. Based on experience from its other retail outlets, Livingston Manufacturing is making the following sales projections: Cash sales Credit sales January $60,000 $40,000 February $30,000 $50,000 March $40,000 $60,000 April $40,000 $80,000 Livingston Manufacturing estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. The March 31 balance in accounts receivable will be: A. $100,000 B. $60,000 C. $95,000 D. $75,000
Livingston Manufacturing will open a new store on January 1. Based on experience from its other retail outlets, Livingston Manufacturing is making the following sales projections: Cash sales Credit sales January $60,000 $40,000 February $30,000 $50,000 March $40,000 $60,000 April $40,000 $80,000 Livingston Manufacturing estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. The March 31 balance in accounts receivable will be: A. $100,000 B. $60,000 C. $95,000 D. $75,000
Chapter7: Budgeting
Section: Chapter Questions
Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...
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