A corporation anticipates the following sales during the last 6 months of the year: $460,000 $500,000...

 

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A corporation anticipates the following sales during the last 6 months of the year: $460,000 $500,000 $525,000 $500,000 $480,000 $450,000 July August September October November December 20% of the corporation's sales are for cash. The balance is subject to the collection pattern below: • 40% is collected in the same month as the sale ● 30% is collected in the first month following the sale 25% is collected in the second month following the sale 5% is expected to be uncollected and is written off at the end of the second month following the sale How much cash is expected to be collected in December? What is the planned gross accounts receivable as of December 31? A corporation anticipates the following sales during the last 6 months of the year: $460,000 $500,000 $525,000 $500,000 $480,000 $450,000 July August September October November December 20% of the corporation's sales are for cash. The balance is subject to the collection pattern below: • 40% is collected in the same month as the sale ● 30% is collected in the first month following the sale 25% is collected in the second month following the sale 5% is expected to be uncollected and is written off at the end of the second month following the sale How much cash is expected to be collected in December? What is the planned gross accounts receivable as of December 31?

Answer rating: 100% (QA)

To calculate the cash expected to be collected in December we need to consider the sales from Octobe... View the full answer