Question
Apex Co. had the following historical collection pattern for its credit sales: 25% collected in the month of sale 55% collected in the first month
Apex Co. had the following historical collection pattern for its credit sales: 25% collected in the month of sale 55% collected in the first month after month of sale 15% collected in the second month after month of sale 4% collected in the third month after month of sale 1% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
| July | $ | 72,000 |
|
| August | $ | 99,000 |
|
| September | $ | 115,000 |
|
| October | $ | 108,000 |
|
| November | $ | 120,000 |
|
| December | $ | 102,000 |
|
The estimated cash collection by Apex Co. during September from credit sales in July, August, and September is:
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
Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
