Question

ABC company has budgeted the following sales. January $100,000 February $200,000 Sales (on Income statement) Sales are 80% crABC company has budgeted the following sales. January $100,000 February $200,000 Sales (on Income statement) Sales are 80% crABC company has budgeted the following sales. January Sales (on Income statement) $100,000 February $200,000 Sales are 80% crABC company has budgeted the following sales. January February $200,000 Sales (on Income statement) $100,000 Sales are 80% cr

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Answer #1

1.

Collection for January

= (100,000*20%) + (85,000*100%)

= 20,000+85,000

= 105,000

Collection for February

= (200,000*20%) +(80,000*100%)

= 40,000+80,000

= 120,000

Option B is the answer

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