The projected or budgeted sales for Elite Accessories Inc. for three months are shown below. The company expects to sell 10% of its merchandise for cash. Of the sales on account, 60% are expected to be collected in the month of the sale and the remaining 40% in the following month. The accounts receivable balance on January 1 was $370,000. What would be the amount of the cash sales for the month of January?
JANUARY |
FEBRUARY |
MARCH |
|
Budgeted Sales |
$1,080,000 |
$1,240,000 |
$970,000 |
A.$1,080,000 B.$370,000 C.$108,000 D. $972,000
Please show me the step to get this answer.
Correct Option C i.e. $108,000 | ||||
JANUARY | FEBRUARY | MARCH | ||
Budgeted Sales | 1,080,000 | 1,240,000 | 970,000 | |
Cash Sales Percentage | 10% | 10% | 10% | |
Amount of Cash SALES | 108,000 | 124,000 | 97,000 | |
(1080000*10%) | (1240000*10%) | (970000*10%) | ||
The projected or budgeted sales for Elite Accessories Inc. for three months are shown below. The company...
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