You are the Canadian production firm's Chief Financial Officer (CFO). The Canadian production firm sells products on credit. The credit sales and other information are as follows:
Month October November December
Sales 905,000849,000,999,000
The Canadian production firm collects 30% cash in the month of sales, 30% in the month after the sale, 35% in the second month after the sale, and 5% of the credit sales revenue are bad debts (never collected). Based on the given information, the cash collections for December should be:
A. $873,260
B. $877,350
C. $875,590
D. $872,700
E) None of the given answers is correct.
Answer: correct. A. $873,260 B.$877,350 information, the cash collections for December should be: Sales 905,000 849,000999,000 Month October November December C.$875,590 on credit. The credit sales and other information are as follows: D.$872,700 second month after the sale, and 5% of the credit sales revenue are bad debts (never collected). Based on the given The Canadian production firm collects 30% cash in the month of sales, 30% in the month after the sale, 35% in the 19. You are the Canadian production firm's Chief Financial Officer (CFO). The Canadian production firm sells products E) None of the given answers is