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Sales on account for the first two months of the current year are budgeted as follows. January $ 668,000 February 828,000 All sales are made
Sales on account for the first two months of the current year are budgeted as follows.
January | $ | 668,000 |
February | 828,000 | |
All sales are made on terms of 2/10, n/30 (2 percent 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 period | 60 | % |
After discount period | 15 | |
Collections within the month following sale: | ||
Within discount period | 15 | |
After discount period | 7 | |
Returns, allowances, and uncollectibles | 3 | |
Total | 100 | % |
Compute the estimated cash collections on accounts receivable for the month of February.
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