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how do I find B $ two amounts Honest Joe has made the following sales projections for the next six months. All sales are credit
how do I find B $
two amounts
Honest Joe has made the following sales projections for the next six months. All sales are credit sales March April May $ 51,000 June 57,000 July 46,000 August $ 55,000 63,000 65,000 Sales in January and February were $54,000 and $53,000 respectively Experience has shown that 10 percent of total sales are uncollectible, 25 percent are collected in the month of sale, 35 percent are collected in the following month, and 30 percent are collected two months after sale a. Prepare a monthly cash receipts schedule for the firm for March through August January $ 54000 Honest Joe Cash Receipts Schedule February March $ 53000 $ 51000 12750 65000 Sales Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier April $ 57000 14250 17850 159001 May $ 46000 11500 19950 15300 June $ 55000 13750 16100 17100 July 5 63000 15750 19250 13800 August $ 16250 22050 16500 18550 162001 Total cash receipts $ 47500 $ 48000 $ 46750 $ 46950 5 49800 $ 54800 b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? Uncollected Expected to be collected Amount $ $Step by Step Solution
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