The following credit sales are budgeted by Milford Company: May ....... $136,000 June ....... 200,000 July .......
Question:
The following credit sales are budgeted by Milford Company:
May ....... $136,000
June ....... 200,000
July ....... 280,000
August ..... 240,000
The company’s past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of August is
1. $240,000
2. $246,880
3. $235,200
4. $224,000
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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 Computation of the August month Cash collections ...View the full answer
Answered By
Aqib Parvej
I am teaching since my graduation time so I have teaching experience of about 5 years and in these years I learn to teach in the best and interesting way .
20+ Reviews
41+ Question Solved
Related Book For 
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Question Posted:
