Question
The following sales budget has been prepared: Month Cash Sales Credit Sales May $20,000 $40,000 June 40,000 60,000 July 60,000 80,000 August 80,000 100,000 Collections
The following sales budget has been prepared:
Month Cash Sales Credit Sales
May $20,000 $40,000
June 40,000 60,000
July 60,000 80,000
August 80,000 100,000
Collections are 50 percent in the month of sale, 40 percent in the month following the sale, and 5 percent two months following the sale. The remaining 5 percent is expected to be uncollectible.
What will be the total cash collections in July?
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Intermediate Accounting Volume 1
Authors: Kin Lo, George Fisher
4th Edition
013523610X, 9780135236109
