McNally Inc.s sells 25% of its goods for cash and 75% on credit. The companys Accounts Receivable

Question:

McNally Inc.’s sells 25% of its goods for cash and 75% on credit. The company’s collection pattern is 70% in the month of sale, 20% in the month after sale, and 10% in the second month after sale. The balance at May 31 is $234,600, of which $170,400 represents the remainder of May’s sales. There are no receivables prior to April. Total sales for June are expected to be $864,500.
Required:
(a) What were total sales for April?
(b) What were credit sales for May?
(c) What are projected cash collections for June?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...