Type

The following information pertains to Stark Corporation

Month

Jan

Feb

Mar

Apr

May

June

sales and Purchases

$30,000 $10000

34,000 12000

38,000 14000

42,000 16000

48,000 18000

60,000 20000

Cash is collected from customers in the following manner

30% Month of sale*

50% Month following sale

15% Two months following sale

5% Amount uncollectible

*Customers paying in the month of sale receive a 2% cash discount.

40% of purchases are paid for in cash in the month of purchase, and the balance is paid the

following month.

Prepare a summary of cash collections for the 2nd quarter.