Answer:
Total cash collection= $235,600
Explanation:
Giving the following information:
Cash Sales Credit Sales
January $80,000 $180,000
Credit Sales
December= 47,000*2= $94,000
Collections on sales:
50% in month of sale
40% in month following sale
10% in second month following sale
The accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales.
<u>Cash collection January:</u>
Sales on cash Jnauary= 80,000
Sales on account January= 180,000*0.5= 90,000
Sales on account December= 94,000*0.4= 37,600
Sales on account November= 28,000
Total cash collection= $235,600