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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

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

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