32. Brown Company estimates that monthly sales will be as follows. January February March P100,000 150,000 180,000 Historical trends indicate that 40% of sales are collected during the month of sale, 50% are collected in the month following the sale, and 10% are collected two months after the sale. Brown's accounts receivable balance as of December 31 totals P80,000 (P72,000 from December's sales and P8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is a. P76,800. b. P84,000. c. P108,000. d. P133,000.

32. Brown Company estimates that monthly sales will be as follows. January February March P100,000 150,000 180,000 Historical trends indicate that 40% of sales are collected during the month of sale, 50% are collected in the month following the sale, and 10% are collected two months after the sale. Brown's accounts receivable balance as of December 31 totals P80,000 (P72,000 from December's sales and P8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is a. P76,800. b. P84,000. c. P108,000. d. P133,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...

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Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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