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March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are collected in the month of sale; 50% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $60,000 D. $115,000 Taylor, Inc. had accounts receivable of $430,000 and an allowance for doubtful accounts of $18,200 just before writing off as worthless an account receivable from Burton Company of $1,390. The net realizable value of the accounts receivable before and after the write-off was: A. $411,800 before and $411,800 after. B. $448,200 before and $446,810 after. C. $430,000 before and $428,610 after. D. $411,800 before and $410,410 after. Greene Sisters has a DSO of 15 days. The company's average daily sales are $30,000. Assume there are 365 days in a year. What is the level of its accounts receivable? a. $400,000 b. $222,650 c. $10,950,000 d. $450,000 e. $730,000

March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are collected in the month of sale; 50% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $60,000 D. $115,000 Taylor, Inc. had accounts receivable of $430,000 and an allowance for doubtful accounts of $18,200 just before writing off as worthless an account receivable from Burton Company of $1,390. The net realizable value of the accounts receivable before and after the write-off was: A. $411,800 before and $411,800 after. B. $448,200 before and $446,810 after. C. $430,000 before and $428,610 after. D. $411,800 before and $410,410 after. Greene Sisters has a DSO of 15 days. The company's average daily sales are $30,000. Assume there are 365 days in a year. What is the level of its accounts receivable? a. $400,000 b. $222,650 c. $10,950,000 d. $450,000 e. $730,000

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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March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are collected in the month of sale; 50% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $60,000 D. $115,000 Taylor, Inc. had accounts receivable of $430,000 and an allowance for doubtful accounts of $18,200 just before writing off as worthless an account receivable from Burton Company of $1,390. The net realizable value of the accounts receivable before and after the write-off was: A. $411,800 before and $411,800 after. B. $448,200 before and $446,810 after. C. $430,000 before and $428,610 after. D. $411,800 before and $410,410 after. Greene Sisters has a DSO of 15 days. The company's average daily sales are $30,000. Assume there are 365 days in a year. What is the level of its accounts receivable? a. $400,000 b. $222,650 c. $10,950,000 d. $450,000 e. $730,000
Transcribed Image Text:March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are collected in the month of sale; 50% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $60,000 D. $115,000 Taylor, Inc. had accounts receivable of $430,000 and an allowance for doubtful accounts of $18,200 just before writing off as worthless an account receivable from Burton Company of $1,390. The net realizable value of the accounts receivable before and after the write-off was: A. $411,800 before and $411,800 after. B. $448,200 before and $446,810 after. C. $430,000 before and $428,610 after. D. $411,800 before and $410,410 after. Greene Sisters has a DSO of 15 days. The company's average daily sales are $30,000. Assume there are 365 days in a year. What is the level of its accounts receivable? a. $400,000 b. $222,650 c. $10,950,000 d. $450,000 e. $730,000
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