Question
Krazy Kanuck Company has all sales on account. The collection pattern is 45% collected in the month of sale; 40% collected in the month following
Krazy Kanuck Company has all sales on account. The collection pattern is 45% collected in the month of sale; 40% collected in the month following sale; 10% collected in the second month following sale; and 5% uncollectible. The June 30th account receivables amount of $25,000 will be collected in full in July. Determine the total cash collected in the entire quarter ending September 30.
July 30,000 units; August 20,000 units; September 25,000 units and October 40,000 units. The selling price is $20 per unit.
a. $1,160.000 b. $950,000 c. $1,500,000 d. $1,200,000
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