Use the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales $120,000 February March April $35,000 $110,000 $25,000 $90,000 $30,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale. What is the balance of accounts receivable on March 31? Multiple Choice $11,000 $12,000 $72,000 $83,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information to answer questions 1-3:
January
Cash Sales
$40,000
Credit Sales
$120,000
February
March
April
$35,000
$110,000
$25,000
$90,000
$30,000
$100,000
20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale.
What is the balance of accounts receivable on March 31?
Multiple Choice
$11,000
$12,000
$72,000
$83,000
Transcribed Image Text:Use the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales $120,000 February March April $35,000 $110,000 $25,000 $90,000 $30,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale. What is the balance of accounts receivable on March 31? Multiple Choice $11,000 $12,000 $72,000 $83,000
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