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Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales $ 9 9 , 0 0 0 $ 1 2
Information pertaining to Collection Corporation's sales revenue is presented below:
November December January
Cash sales $ $ $
Credit sales
Total sales $ $ $
Management estimates that of credit sales are eventually uncollectible. Of the collectible credit sales, are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to of the sales projected for the month. All purchases of inventory are on open account; will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately of the selling prices.
Total budgeted inventory purchases in November by Collection Corporation are:
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