Question
The following information pertains to Acme Corporation: Month Sales Purchases July 30,000 10,000 August 34,000 12,000 September 38,000 14,000 October 42,000 16,000 November 48,000 18,000
The following information pertains to Acme Corporation:
| Month | Sales | Purchases |
| July | 30,000 | 10,000 |
| August | 34,000 | 12,000 |
| September | 38,000 | 14,000 |
| October | 42,000 | 16,000 |
| November | 48,000 | 18,000 |
| December | 60,000 | 20,000 |
Cash is collected from customers in the following manner:
Month of sale 35%
Month following sale 50%
Two months following sale 15%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. How much are total cash collections for the 4th quarter?
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
