The cash sales and credit sales projected for Sarah's Kitchen are as follows:

             Jan           Feb          March         April         May

Cash   17,000       19,640     16,200        15,380      17,390

Credit  40,000       42,000      48,000       50,000     49,500

If Collections of credit sales are 70% for the first month and 30% for the second month, what would be the cash receipts for March, April and May?

Using this same data, if Sarah's kitchen has a 1% bad debt allowance and can collect only 29% of accounts receivable the second month, what would be the cash receipts for March, April and May?

Answer rating: 100% (QA)

solution To find the cash receipts for March April and May we need to use the formula Cash receipts from customers sales decrease or increase in accou... View the full answer