Emerald Company Has the Following Expected Pattern of Collections on Credit

Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Emerald Company has the following accounts receivable balances:
From April sales                                  $\$ 21,000$
From May sales                                    48,000
Emerald's expected sales for June are $150,000.What were total sales for April?

A) $150,000
B) $72,414
C) $70,000
D) $140,000

Correct Answer:

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