Question
Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 14% collected in the first month
Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 14% collected in the first month after month of sale 7% collected in the second month after month of sale 6% collected in the third month after month of sale 3% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
| July | $ 76,000 |
|---|---|
| August | $ 88,000 |
| September | $ 100,000 |
| October | $ 112,000 |
| November | $ 124,000 |
| December | $ 106,000 |
The estimated total cash collections by Cloudy Company during November from collection of accounts receivable is:
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
