Feemore Company has the following sales budget for the last six months of 2018: July $209,000 October
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Question:
Feemore Company has the following sales budget for the last six months of 2018:
July | $209,000 | October | $188,000 | ||
August | 160,000 | November | 203,000 | ||
September | 201,000 | December | 183,000 |
Sales are immediately due, however, the cash collection ofsales, historically, has been as follows:
65% of sales collected in the month of sale,
25% of sales collected in the month following the sale,
8% of sales collected in the second month following thesale,
2%of sales are uncollectible
Required
a. What are the cash collections for September?
b. What is the ending balance of accounts receivable for the end of September, assuming uncollectible balances are written off at the end of the second month following the sale?
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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