Question
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March $41,000 April50,000 May32,000 June47,000 July58,000
Simpson Glove Company has made the following
sales projections for the next six months. All sales are credit sales.
March $41,000
April50,000
May32,000
June47,000
July58,000
August62,000
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sales to complete monthly cash receipts schedule for the firm for March through August.
do I subtract the uncollectible to the total cash receipts?
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