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Erewon Inc. sells all of its product on account. Erewon has the following accounts receivable payment experience: Line Item Description Percent Percent paid in the

Erewon Inc. sells all of its product on account. Erewon has the following accounts receivable payment experience:

Line Item Description Percent
Percent paid in the month of sale 30
Percent paid in the month after the sale 50
Percent paid in the second month after the sale 18

To encourage payment in the month of sale, Erewon gives a 2% cash discount. The company's anticipated sales for the next few months are as follows:

Month Amount
April $190,000
May 248,000
June 260,000
July 240,000
August 300,000

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