1) Markham Company has completed its sales budget for the first quarter of Year 2....
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Accounting
1) Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below:
| January | $ | 40,000 | |
| February | $ | 46,000 | |
| March | $ | 55,000 | |
| April | $ | 58,000 | |
The company's past records show collection of credit sales as follows: 40% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
Group of answer choices
$49,600.
$55,000.
$42,400.
$51,400.
B) Compton Company expects the following total sales:
| Month | Sales | ||
| March | $ | 27,000 | |
| April | $ | 17,000 | |
| May | $ | 27,000 | |
| June | $ | 22,000 | |
The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is:
Group of answer choices
$12,775.
$11,340.
$19,740.
$20,250.
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