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CTP · Question #778

(Topic 8) Company J is looking to perform an A/R cash analysis based on the following sales information: 60% of sales are collected within two months after sale. After three months, $135,000 of…

The correct answer is B. $45,000. See the full explanation below for the reasoning.

Question

  • (Topic 8)

Company J is looking to perform an A/R cash analysis based on the following sales information:

60% of sales are collected within two months after sale. After three months, $135,000 of January's sales were collected. What was the dollar amount of January's sales collected in April?

Options

  • A$15,000
  • B$45,000
  • C$90,000
  • D$135,000

How the community answered

(29 responses)
  • A
    3% (1)
  • B
    86% (25)
  • C
    7% (2)
  • D
    3% (1)

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