Question
Sales are made 30% for cash and the remainder on credit. Collections for credit sales are made 40% during the month of sale, 35%
Sales are made 30% for cash and the remainder on credit. Collections for credit sales are made 40% during the month of sale, 35% the next month and 25% two months following the sale. Total sales from August through December are as follows: August sales = $400,000 September sales = $500,000. October sales = $580,000. November sales = $650,000. December sales = $800,000. Calculate cash collections for October. Calculate cash collections for November. Calculate cash collections for December. Determine Accounts Receivable at 10/31. Determine Accounts Receivable at 11/30. Determine Accounts Receivable at 12/31.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
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