ACCOUNTING-Richards Corporation has the following budgeted sales

QUESTION

Richards Corporation has the following budgeted sales for the first half of next year: Cash SalesCredit Sales January$70,000 $170,000 February$75,000 $190,000 March$50,000 $150,000 April$55,000 $150,000 May$65,000 $220,000 June$100,000 $400,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on credit sales: 45% in month of sales 40% in month of following sales 15.0% in second month following sales The accounts receivable balance on January 1 is $64,000. Of this amount, $44,000 represents uncollected December sales and $20,000 represents uncollected November sales.The total cash collected during January would be:$80,000$296,000$198,500$261,000

ANSWER:

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