Woodpecker Co. has $302,000 in accounts receivable on January 1. Budgeted sales for January are $813,000. 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.$1,254,400 b.$571,440 c.$952,400 d.$761,920

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Woodpecker Co. has $302,000 in accounts
receivable on January 1. Budgeted sales for
January are $813,000. 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.$1,254,400
b.$571,440
c.$952,400
d.$761,920
Transcribed Image Text:Woodpecker Co. has $302,000 in accounts receivable on January 1. Budgeted sales for January are $813,000. 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.$1,254,400 b.$571,440 c.$952,400 d.$761,920
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