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Budgeting Cash Collections Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and June of $112,000 and $128,000, respectively.
Budgeting Cash Collections Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and June of $112,000 and $128,000, respectively. Analysis of Spencer's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales):
Receiving Discount | Beyond Discount Period | Totals | |||||
---|---|---|---|---|---|---|---|
In month of sale | 50% | 20% | 70% | ||||
In month of following sale | 15% | 10% | 25% | ||||
Uncollectible accounts, returns, and allowances | 5% | ||||||
100% |
Determine the estimated cash collected on customers' accounts in June.
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