Question
Please help me answer this question so I can study. Thanks. Sales on account for the first two months of the current year are budgeted
Please help me answer this question so I can study. Thanks.
Sales on account for the first two months of the current year are budgeted as follows:
Jan.$902,000
Feb.901,000
All sales are made on terms of 2/10, n/30 (2% discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows:
Collections within the month of sale:
Within discount period60%
After discount period15
Collections within the month following sale:
Within discount period15
After discount period7
Returns, allowances, and uncollectibles3
Total100%
Compute the estimated cash collections on accounts receivable for the month ofFebruary.
Estimated cash collections = $______________________?
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