As of January 1 of the Current Year,the Grayson Company

question 99

Multiple Choice

As of January 1 of the current year,the Grayson Company had accounts receivables of $40,000.The sales for January,February,and March were as follows: $120,000,$140,000,and $150,000,respectively.Of each month's sales,20% are for cash.Of the remaining 80% (the credit sales) ,60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?

• A) $64,000
• B) $107,000
• C) $61,600
• D) $121,600

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