Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 debtors collection (in ksh.000) for the month of June.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started