Budgeting Cash Collections Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and June of $105,000 and $120,000, 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.

$Answer

Budgeting Cash Collections Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and June of $105,000 and $120,000, 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.

$Answer