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Cash collections The treasurer of Homeyra Corp. needs to estimate cash collections from accounts receivable for September, October, and November. Forty percent of the company's
Cash collections The treasurer of Homeyra Corp. needs to estimate cash collections from accounts receivable for September, October, and November. Forty percent of the company's customers pay in cash and the rest are credit customers. The collection pattern for the credit customers is 20 percent in the month of sale and 80 percent in the following month. Because of Homeyra's established client base, the company experiences almost zero uncollectible accounts. Estimated total sales for August, September, October, and November follow. Month Sales August $124,800 September 128,000 October 152,000 November 145,600 Determine Homeyra Corp.'s cash collections for September, October, and November. Cash Collections: September 166,400 x October Ox November 0 x $ $
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