The following table represents the credit sales of Blossom Foods for the first five months of...

Transcribed Image Text:

The following table represents the credit sales of Blossom Foods for the first five months of the current year: Month January February March April May Credit Sales $40900 $54700 $46400 $50400 $54800 According to their records, the company is expecting to receive payments for credit sales as follows: 60% in the month of sale, 20% in the first month after the sale, 15% in the second month after the sale, and the remainder becomes uncollectible. Calculate the amount of uncollectible accounts for Blossom as a result of these credit sales for the 5-month period. The following table represents the credit sales of Blossom Foods for the first five months of the current year: Month January February March April May Credit Sales $40900 $54700 $46400 $50400 $54800 According to their records, the company is expecting to receive payments for credit sales as follows: 60% in the month of sale, 20% in the first month after the sale, 15% in the second month after the sale, and the remainder becomes uncollectible. Calculate the amount of uncollectible accounts for Blossom as a result of these credit sales for the 5-month period.

Answer rating: 100% (QA)

The expected collection pattern for Blossom Foods is as follows ... View the full answer