Question
Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month
Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month after month of sale 8% collected in the second month after month of sale 3% collected in the third month after month of sale 2% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
| July | $ | 72,000 | |
| August | $ | 84,000 | |
| September | $ | 96,000 | |
| October | $ | 108,000 | |
| November | $ | 120,000 | |
| December | $ | 102,000 | |
The estimated cash collections during July from credit sales made in July by Fresplanade Co. is:
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
22nd Edition
126059808X, 978-1260598087
