Question
ABC Company's sales are 25% in cash and 75% on credit. Fifty percent of the credit sales are collected in the month of sale, 30%
ABC Company's sales are 25% in cash and 75% on credit. Fifty percent of the credit sales are collected in the month of sale, 30% in the month following sale, and 15% in the second month following sale. The remaining amount is uncollectible. The following are the budgeted sales data:
| April | May | June | July | |
| Total Sales | $50,000 | $60,000 | $40,000 | $30,000 |
Determine the amount of credit sales in June.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
