Question
Fresplanade Co. had the following historical collection pattern for its credit sales: 70% collected in the month of sale 14% collected in the first month
Fresplanade Co. had the following historical collection pattern for its credit sales: 70% collected in the month of sale 14% collected in the first month after month of sale 8% collected in the second month after month of sale 6% 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 | $ | 84,000 | |
| August | $ | 96,000 | |
| September | $ | 108,000 | |
| October | $ | 120,000 | |
| November | $ | 132,000 | |
| December | $ | 114,000 | |
The estimated cash collection by Fresplanade Co. during August from July and August credit sales is:
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Auditing And Financial Management Federal Information System Controls Audit Manual
Authors: U.S. Government Accountability Office
1st Edition
1289168172, 978-1289168179
