Suppose That a Company Has the Following Accounts Receivable Collection

question 89

Multiple Choice

Suppose that a company has the following accounts receivable collection pattern: Paid in the month of sale 30%
Paid in the month following sale 70%
All sales are on credit. Suppose credit sales for March and April are $300,000 and $200,000, respectively. What would be the company's cash collection for April?

• A) $60,000
• B) $240,000
• C) $270,000
• D) $340,000

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Definitions:

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The process by which multiple stakeholders work together to come to a decision regarding an issue or problem.

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A group creativity technique in which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

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A set of criteria or instructions designed to direct behavior, actions, or decision-making.