Cohlmia Company makes all its sales on account. Cohlmia’s accounts receivable pa
ID: 2470845 • Letter: C
Question
Cohlmia Company makes all its sales on account. Cohlmia’s accounts receivable payment experience is as follows:
Percent paid in the month of sale
20%
Percent paid in the month after the sale
75%
Percent paid in the second month after the sale
2%
Cohlmia provided information on sales as follows:
September
$100,000
October
$120,000
November
$200,000
December
$250,000
1. What are the expected cash receipts for November?
2. What are the expected cash receipts for December?
Percent paid in the month of sale
20%
Percent paid in the month after the sale
75%
Percent paid in the second month after the sale
2%
Explanation / Answer
Nov Dec sales sept 100000 2000 oct 120000 90000 2400 nov 200000 40000 150000 dec 250000 50000 TOTAL 132000 202400