Rich company's experience shows that 20% of its sales are for cash and 80% are on credit.
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Question:
Rich company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate items:
Sales.......
August-$500000
September-$525000
October-$535,000
November-$560000
October November
Receipts from cash sales........
Collections from Aug. Credit Sales......
Collections from Sept. Credit Sales.......
Collections from October credit sales....
Total cash collections during the month....
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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