The following are estimated sales for Van Buren Company: Sales April $80,000 May
ID: 2459942 • Letter: T
Question
The following are estimated sales for Van Buren Company:
Sales
April
$80,000
May
$90,000
June
$65,000
All sales are on credit. Records indicate that 70% of the customers pay in the month of sale, 20% pay in the month following the sale, and 10% pay in the second month after the sale.
The cash collected in June is:
The following are estimated sales for Van Buren Company:
Sales
April
$80,000
May
$90,000
June
$65,000
All sales are on credit. Records indicate that 70% of the customers pay in the month of sale, 20% pay in the month following the sale, and 10% pay in the second month after the sale.
The cash collected in June is:
Explanation / Answer
Cash collection for the month of june
June 70% ($65,000*70%) : $45,500
May 20% (90,000*20%) : $18,000
April 10% ($80,000*10%) : $8,000
Total Cash collection for the month of june = $71,500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.