It is January 1 of Year 2. Sales for Harry Company for January, February, and March...

It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. 80% of sales are credit sales; the remaining 20% of sales are cash sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively.

What is the forecasted amount of total CASH COLLECTIONS FROM SALES in January?

$236,000
$272,000
$254,000
$248,000
$260,000

Expert Solution

ekkarill92 answered 2 years ago

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