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Business, 07.04.2020 17:53 evanwall91
It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. ALL sales are credit sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively.
What is the forecasted amount of total CASH COLLECTIONS FROM SALES in March?
A. $280,000
B. $270,000
C. $310,000
D. $290,000
E. $300,000
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