Question
Fiscal Company has the following sales budget for the last six months of 2013: July $100,000 October $90,000 August 80,000 November 100,000 September 110,000 December
Fiscal Company has the following sales budget for the last six months of 2013:
July
$100,000
October
$90,000
August
80,000
November
100,000
September
110,000
December
94,000
Historically, the cash collection of sales has been as follows:
65% of sales collected in the month of sale,
25% of sales collected in the month following the sale,
8% of sales collected in the second month following the sale, and
2% of sales are uncollectible.
A) What are the cash collections for September?
B) What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the second month following the sale?
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