The following information pertains to sales of XYZ Company Collections of sales are generally 20% in cash and 80% in credit. This means in the month of the sale 20% is paid in cash to XYZ and XYZ extends credit for the remaining 80% of the sales. The credits sales are collected as follows: 30% in the month of the sale, 60% in the month after the sale, 6% two months after the sale, 4% are never collected If the December sales are $10,500, what are the collections of credit sales in the month of January? OA $10,500 OB. $8,400 OC. $5,040 OD. $2,100 CI

The following information pertains to sales of XYZ Company Collections of sales are generally 20% in cash and 80% in credit. This means in the month of the sale 20% is paid in cash to XYZ and XYZ extends credit for the remaining 80% of the sales. The credits sales are collected as follows: 30% in the month of the sale, 60% in the month after the sale, 6% two months after the sale, 4% are never collected If the December sales are $10,500, what are the collections of credit sales in the month of January? OA $10,500 OB. $8,400 OC. $5,040 OD. $2,100 CI

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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