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 8% collected in the second month after month of sale 6% collected in the third month after month of sale 2% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
| July | $ 74,000 |
|---|---|
| August | $ 86,000 |
| September | $ 98,000 |
| October | $ 110,000 |
| November | $ 122,000 |
| December | $ 104,000 |
The estimated total cash collections by Cloudy Company during December from accounts receivable is:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting For Inventory
Authors: Steven M. Bragg
4th Edition
1642210714, 9781642210712
