A company has given the sales details for the first half of the year as follows:

	Ksh. 000
January	460,000
February	630,000
March	784,000
April	930,000
May	1,190,000
June	1,370,000

10% of sales are for cash and the balance is on credit. Of the credit sales, 40% is collected in the month of sale; 50% one month later; 7%, two months later and the balance is unrecoverable and therefore written off as bad debts.

Required:

Calculate the debtor's collection (in ksh.000) for the month of June.

Question 3Answer

A.

Ksh 1,087,290

B.

Ksh 896,292

C.

Ksh 1,071,000

D.

Ksh 1,233,000