Parkers Car Restoration expects the following sales for March, April, and May. The controller has determined...

 

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Parkers Car Restoration expects the following sales for March, April, and May. The controller has determined that the company collects credit sales in the following pattern: collects cash at the time of sale from 30% of customers. Of the remaining sales, S0% are collected in the month following the sale, and 10% are uncollectible. The sales budget for the first seven months of the year is as follows: Cash Sales $220,000 200,000 300,000 Credit Sales $1,760,000 1,000,000 1,200,000 March April May How much cash will be collected from customers in May? March April May Cash Budget Cash Sales Credit Sales 30% in month of sale 50% in month after sale 10% in the second month after the sale Totals Parkers Car Restoration expects the following sales for March, April, and May. The controller has determined that the company collects credit sales in the following pattern: collects cash at the time of sale from 30% of customers. Of the remaining sales, S0% are collected in the month following the sale, and 10% are uncollectible. The sales budget for the first seven months of the year is as follows: Cash Sales $220,000 200,000 300,000 Credit Sales $1,760,000 1,000,000 1,200,000 March April May How much cash will be collected from customers in May? March April May Cash Budget Cash Sales Credit Sales 30% in month of sale 50% in month after sale 10% in the second month after the sale Totals

Answer rating: 100% (QA)

Cash Budget Credit sales 1 30 cash collection A 1760000 x30 528000 B 10... View the full answer