Month Cash Sales Credit Sates September $167,000 $123,000 October 225,000180.000
ID: 2470689 • Letter: M
Question
Month Cash Sales Credit Sates September $167,000 $123,000 October 225,000180.000 November 330,000210.000 December 135,000190.000 Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts arc expected. What are the estimated cash collections in December? $135,000 $ 197,000 $325,000 $332,000 Month Cash Sales Credit Sales September $123,000 $210,000 October 140,000 200,000 November 167,000260,000 December 189,000 190,000 Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What are the estimated cash collections in October from October sales? $125,000Explanation / Answer
Month Cash Sales Credit Sales Oct Nov Dec Total September 167000 123000 October 225000 180000 50% November 330000 210000 40% 50% December 135000 190000 10% 40% 50% 10% 40% 10% December 135000 18000 84000 95000 332000 D Month Cash Sales Credit Sales Oct Nov Dec Total September 123000 210000 October 140000 200000 50% November 167000 260000 40% 50% December 189000 190000 10% 40% 50% 10% 40% 10% Oct 140000 100000 240000 D