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Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid
Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows:
Percent paid in the month of sale | 35% |
Percent paid in the month after the sale | 54% |
Percent paid in the second month after the sale | 6% |
Alpha provided information on sales as follows:
May | $150,000 |
June | $125,000 |
July | $136,000 |
August (expected) | $142,000 |
How much of May's sales are expected to be uncollectible?
a.$5,000
b.$7,500
c.$0
d.$2,500
e.$7,200
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