Question
Collections from accounts receivable normally have the following pattern: 60 per cent in the month of sale, 30 per cent in the month following the
Collections from accounts receivable normally have the following pattern: 60 per cent in the month of sale, 30 per cent in the month following the sale, and 10 per cent in the second month following the sale. Sales in January, February, March, and April were $295,000, $266,000, $302,000 and 350,000, respectively. What would be the total collection from account receivable in April, May, and June?
Select one:
a. April $307,600, May $172,000 and June $40,000.
b. April $295,200, May $75,600 and June $28,800.
c. April $210,200, May $85,600 and June $308,000.
d. April $327,200, May $135,000, and June $350,000.
e. None of the above.
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