Lyndhurst Corporation normally collects cash from credit customers as follows: 50 percent in the month of sale,

Question:

Lyndhurst normally collects cash from credit customers as follows: 50 percent in the month of sale, 30 percent in the first month after sale, 18 percent in the second month after sale, and 2 percent never collected. Lyndhurst expects its credit sales to be as follows:
January ....................................................................................................... $1,000,000
February ....................................................................................................... 1,200,000
March ............................................................................................................. 800,000
April ............................................................................................................ 1,000,000

a. Calculate the amount of cash Lyndhurst expects to receive from credit customers during March.
b. Calculate the amount of cash Lyndhurst expects to receive from credit customers during April.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...