Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales. 7
Posted: Thu May 19, 2022 3:36 pm
Paradise, Inc., a distributor of suntan lotion, has the
following historical collection pattern for its credit sales.
70 percent collected in the month of sale.
15 percent collected in the first month after sale.
10 percent collected in the second month after sale.
4 percent collected in the third month after sale.
1 percent uncollectible.
The sales on account have been budgeted for the last seven months
as follows:
Required:
A. Compute the estimated total cash
collections during August from credit sales.
B. Compute the estimated total cash
collections during the August - October quarter from sales made on
account during this quarter.
following historical collection pattern for its credit sales.
70 percent collected in the month of sale.
15 percent collected in the first month after sale.
10 percent collected in the second month after sale.
4 percent collected in the third month after sale.
1 percent uncollectible.
The sales on account have been budgeted for the last seven months
as follows:
Required:
A. Compute the estimated total cash
collections during August from credit sales.
B. Compute the estimated total cash
collections during the August - October quarter from sales made on
account during this quarter.