Answer (B) is correct . Cash sales are 20% of monthly sales, credit sales are 80% of monthly sales, and collections on credit sales are 30% in the month of sale.
700*0.2+700*0.8*0.3
Answer (A) is incorrect because The amount of $140,000 excludes collections on March credit sales.
Answer (C) is incorrect because The amount of $350,000 assumes 20% of sales are for cash and that collections on credit sales equal 30% of total sales.
Answer (D) is incorrect because Total cash collections during March on first quarter sales equals $636,000.
kThe amount of cash collected in March for Karmee Company from the sales made during March will be
