Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2018. Forty percent of the companys customers

The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2018. Forty percent of the companys customers pay in cash the rest are credit customers. The collection pattern for the credit customers is 20% in the month of the sale and 80% in the following month. They have zero uncollectible accounts. Estimated total sales are as follows:

August $70,000

September $80,000

October $90,000

November $100,000

a. What is Yodas cash collections for September, October, and November?

- September cash collections:

- October cash collections:

- November cash collections:

b. The accounts receivable balance at the end of November will be:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO 27001 Controls A Guide To Implementing And Auditing

Authors: IT Governance

1st Edition

1787781445, 978-1787781443

More Books

Students also viewed these Accounting questions