Credit collections are % two months following the sale, % in the month following the sale, and % in the month of sale. The

Question

4 years ago

6

remaining % is expected to be uncollectible. What is the total cash received in April from the April sales at Feeney Furniture?

1 answer:

lutik1710 [3] · Answer 1 · 2022-01-12T03:45:49+03:00

Answer: $‭49,120‬

Explanation:

Given the collection strategy listed, the total cash received in April would be

= Cash sales for April + (30% * March credit sales) + ( 62% of April credit sales)

= 39,000 + ( 0.3 * 11,000 ) + ( 0.62 * 11,000)

= 39,000 + 3,300 + ‭6,820‬

= $‭49,120‬

Credit collections are ​% two months following the​ sale, ​% in the month following the​ sale, and ​% in the month of sale. The