Question Content Area Fashion Jeans, Inc., sells two lines of jeans: Simple Life and Fancy Life. Simple Life sells for $85, and Fancy Life sells for $100. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are: January, 20,000 pairs of jeans; February, 27,500 pairs of jeans; and March, 25,000 pairs of jeans. The estimated sales for Fancy are: January, 18,000 pairs of jeans; February, 19,000 pairs of jeans; and March, 20,500 pairs of jeans. The expected cash receipts for the month of March is a. $2,125,000 b. $3,988,125 c. $2,505,000 d. $4,175,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question Content Area
Fashion Jeans, Inc., sells two lines of jeans:
Simple Life and Fancy Life. Simple Life sells
for $85, and Fancy Life sells for $100. The
company sells all of its jeans on credit and
estimates that 60% is collected in the
month of the sale, 35% is collected in the
following month, and the rest is considered
to be uncollectible. The estimated sales for
Simple are: January, 20,000 pairs of jeans;
February, 27,500 pairs of jeans; and March,
25,000 pairs of jeans. The estimated sales
for Fancy are: January, 18,000 pairs of
jeans; February, 19,000 pairs of jeans; and
March, 20,500 pairs of jeans. The expected
cash receipts for the month of March is
a. $2,125,000
b. $3,988,125
c. $2,505,000
d. $4,175,000
Transcribed Image Text:Question Content Area Fashion Jeans, Inc., sells two lines of jeans: Simple Life and Fancy Life. Simple Life sells for $85, and Fancy Life sells for $100. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are: January, 20,000 pairs of jeans; February, 27,500 pairs of jeans; and March, 25,000 pairs of jeans. The estimated sales for Fancy are: January, 18,000 pairs of jeans; February, 19,000 pairs of jeans; and March, 20,500 pairs of jeans. The expected cash receipts for the month of March is a. $2,125,000 b. $3,988,125 c. $2,505,000 d. $4,175,000
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