Question
The Russ Fogler Company began operations on January 1, 2016. Its credit sales for the first 6 months of operations were as follows: Month Credit
The Russ Fogler Company began operations on January 1, 2016. Its credit sales for the first 6 months of operations were as follows:
Month | Credit Sales |
January | $ 50,000 |
February | 100,000 |
March | 120,000 |
April | 105,000 |
May | 140,000 |
June | 160,000 |
Ten percent of the companys customers typically pay within the month of sale, 75 percent pay in the month following the sale, and 15 percent pay in the 2nd month following the sale.
4. What was Foglers accounts receivables balance at the end of March and at the end of June?
5. What was the Days Sales Outstanding (DSO) for the first quarter and the second quarter?
6. Construct the uncollected balances schedule for the first quarter and the second quarter.
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