Mississippi Retailers expects credit sales in the next quarter as follows: April
ID: 2381143 • Letter: M
Question
Mississippi Retailers expects credit sales in the next quarter as follows:April
$69,800
May
93,800 June
103,000
Prior experience has shown that 68 percent of a month Mississippi Retailers expects credit sales in the next quarter as follows:
April
$69,800
May
93,800 June
103,000
Prior experience has shown that 68 percent of a month Exercise 10-12 Mississippi Retailers expects credit sales in the next quarter as follows: Prior experience has shown that 68 percent of a month's sales are collected in the month of sale, 17 percent are collected in the month following sale, and the remaining 15 percent are collected in the second month following sale. February and March sales were $86,100 and $105,000, respectively.
Explanation / Answer
Collection of credit sales
April
May
June
Collection of February sales
$12,915
(15% *$86,100)
-
-
Collection of March sales
$17,850
(17% *$105,000)
$15,750
(15%*$105,000)
-
Collection of April sales
$47,464
(68%*$69,800)
$11,866
(17% * $69,800)
$10,470
(15% *$69,800)
Collection of May sales
-
$63,784
(68% * $93,800)
$15,946
(17% * $93,800)
Collection of June sales
-
-
$70,040
(68% * $103,000)
Total
$78,229
$91,400
$96,456
Collection of credit sales
April
May
June
Collection of February sales
$12,915
(15% *$86,100)
-
-
Collection of March sales
$17,850
(17% *$105,000)
$15,750
(15%*$105,000)
-
Collection of April sales
$47,464
(68%*$69,800)
$11,866
(17% * $69,800)
$10,470
(15% *$69,800)
Collection of May sales
-
$63,784
(68% * $93,800)
$15,946
(17% * $93,800)
Collection of June sales
-
-
$70,040
(68% * $103,000)
Total
$78,229
$91,400
$96,456