4pts
XYZ is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end,
collections on credit sales are as follows: 2% of the credit sales are considered as uncollectible, 65% of the collectible credit
sales are collected in month of sale; 30% in month following sale and the remaining in second month following sale. The
company's budgeted cash and credit sales for January and February are as follows:
January
February
Cash Sales
$70,000
$80,000
Credit Sales
380,000
335,000
The accounts receivable balance on January 1 of the current year was $76,000, of which $55,000 represents accounts
receivable from December sales and $20,000 represents accounts receivable from November sales. What are total cash receipts
in January?
None is correct.
$329,945.
$335.250.
$377,860
$331,250.