Crane Company has the following sales projections for its second and third quarters: April $220,000 May...

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Crane Company has the following sales projections for its second and third quarters: April $220,000 May $240,000 June $260,000 July $280,000 August $270,000 September $250,000 Normal cash collection experience has been that 50% of sales are collected during the month of sale, 30% in the month following sale, and 15% in the second month following sale. The remaining 5% of sales is never collected. Prepare the schedule of cash collections for the third quarter, by month and in total. Cash Collection Schedule Jul. Aug. Sep. Total planned sales 2$ 24 Credit sales collected during month Credit sales collected one month later Credit sales collected two months later 2$ 3rd Qtr 24 %24 %24 %24 %24 Crane Company has the following sales projections for its second and third quarters: April $220,000 May $240,000 June $260,000 July $280,000 August $270,000 September $250,000 Normal cash collection experience has been that 50% of sales are collected during the month of sale, 30% in the month following sale, and 15% in the second month following sale. The remaining 5% of sales is never collected. Prepare the schedule of cash collections for the third quarter, by month and in total. Cash Collection Schedule Jul. Aug. Sep. Total planned sales 2$ 24 Credit sales collected during month Credit sales collected one month later Credit sales collected two months later 2$ 3rd Qtr 24 %24 %24 %24 %24

Answer rating: 100% (QA)

solution working notes collection pattern 50 in month of sale 30 in month following sal... View the full answer