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Do you understand ACP's and payment plans? This is my course question Suppose each customer acts as follows: 10 percent pay in the month of

Do you understand ACP's and payment plans? This is my course question

Suppose each customer acts as follows: 10 percent pay in the month of sale, 40 percent pay in the month following the sales month, and 50 percent pay two months after the sale. What would be the effect of the change in customers' payment patterns on receivables balances, ACPs, aging schedules, uncollected balances schedules, and carrying costs of receivables at the ends of March and June? Explain

EXHIBIT 6.2 Sooner Pharmaceuticals: Partial Sales Forecasts for Year 1

Month Sales

January $100,000

February $250,000

March $400,000

April $600,000

May $450,000

June $300,000

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