Question
ABC Ltd is a retailer of ladies' fashion and has the following historical collection pattern for its credit sales: 65 percent collected in the month
ABC Ltd is a retailer of ladies' fashion and has the following historical collection pattern for its credit sales:
- 65 percent collected in the month of sale
- 15 percent collected in the first-month after-sale
- 10 percent collected in the second-month after-sale
- 5 percent collected in the third-month after-sale
- 5 percent uncollectable.
The credit sales have been budgeted for the last seven months of the year, as shown below:
June
$225,000
July
240,000
August
250,000
September
260, 000
October
280, 000
November
300, 000
December
225 000
Calculate the estimated total cash receipts during December from credit sales.
a.
None of the answers given
b.
$290000
c.
$244,000
d.
$260,000
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
