Budgeting Cash Collections

Spencer Consulting, which invoices its clients on terms $2/10,$ n$/30,$ had credit sales for May and June of $$35,000$ and $$40,000,$ 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