If a Firm Had Credit Sales of $1,550,000 for March

question 52

Multiple Choice

If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?

• A)$1,250,000.
• B)$375,000.
• C)$875,000.
• D)$465,000.

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Definitions:

Snowmelt

The process where accumulated snow and ice start to melt, turning into water, often significant in the understanding of flood risks and water supply.

Soluble Materials

Substances that can be dissolved in a solvent to form a solution.

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The process by which a substance is dissolved by a solvent, resulting in a solution, especially referring to minerals in rocks by water.

Transported

Refers to materials or sediment that have been moved and deposited in a new location by natural processes.