Question
30% of its sales are for cash and 70% are on credit.An analysis of credit sales shows that 50% of credit sales are collected in
30% of its sales are for cash and 70% are on credit.An analysis of credit sales shows that 50% of credit sales are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible.Use the following sales budget to calculate the listed items and show your answers.
Aug | Sept | Oct | Nov | |
$ 300,000 | $ 325,000 | $ 335,000 | $ 360,000 | |
Receipts from cash sales: | $ 90,000 | $ 97,500 | $ 100,500 | $ 108,000 |
Collections from August credit sales: |
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Collections from September credit sales: |
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Collections from October credit sales: |
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Total cash collections during the month: |
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