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Mahler's Wholesale credit sales are collected in cash in the following collection pattern: 60% in month of sale 30% in month following sale 10% in
Mahler's Wholesale credit sales are collected in cash in the following collection pattern:
60% in month of sale 30% in month following sale 10% in second month following sale It has the following budgeted sales for the third quarter of the year: July August September Cash Sales $ 60,000 $ 55,000 $ 50,000 Credit Sales $ 180,000 $ 170,000 $ 130,000 Assume that the accounts receivable balance on July 1 was $95,000. Of this amount, $80,000 represented uncollected June sales and $15,000 represented uncollected May sales. Given these data, the total cash collected during July would be: A. $183,000 B. $228,000 C. $243,000 $258,000 None of the above
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