Question
eastern sales are all credit sales. past collection history indicates that credit sales are collected as follows. 10% in the month of sale 70% in
eastern sales are all credit sales. past collection history indicates that credit sales are collected as follows.
10% in the month of sale
70% in the month following sale
20% in the second month following sale
For the upcoming year, sales are budgeted to be as follows:
April 45,000
May 50,000
June 40,000
April sales collected calculation collected in June
May sales collected
June sales collected
Total
How much will cash collections be for June?
a. $ 48,000
b.$ 0
c. $ 8000
d. $ 47,500
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
8th Edition
1119791057, 978-1119791058
