Andover Inc. has projected sales to be: February, P10,000; March, P9,000; April, P8,000; May, P10,000; and...

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Andover Inc. has projected sales to be: February, P10,000; March, P9,000; April, P8,000; May, P10,000; and June, P11,000. Andover has 30% cash sales and 70% sales on account. Accounts are collected 40% in the month following the sale and 55% collected the second month. Total cash receipts in May would be? Andover Inc. has projected sales to be: February, P10,000; March, P9,000; April, P8,000; May, P10,000; and June, P11,000. Andover has 30% cash sales and 70% sales on account. Accounts are collected 40% in the month following the sale and 55% collected the second month. Total cash receipts in May would be?

Answer rating: 100% (QA)

To calculate the total cash receipts in May we need to consider the sales made in April and May as w... View the full answer