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Woodpecker Co. has $294,000 in accounts receivable on January 1. Budgeted sales for January are $938,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: a. $1,044,400 b. $626,640 c. $835,520 d. $1,338,400

Woodpecker Co. has $294,000 in accounts receivable on January 1. Budgeted sales for January are $938,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: a. $1,044,400 b. $626,640 c. $835,520 d. $1,338,400

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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Woodpecker Co. has $294,000 in accounts receivable on January 1. Budgeted sales for January are $938,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: a. $1,044,400 b. $626,640 c. $835,520 d. $1,338,400
Transcribed Image Text:Woodpecker Co. has $294,000 in accounts receivable on January 1. Budgeted sales for January are $938,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: a. $1,044,400 b. $626,640 c. $835,520 d. $1,338,400
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