Question

Freemore Corp. projected sales for the last 6 months of next year: July $206,000 October $181,000 August 168,000 November 203,000 September 209,000 December 185,000 The cash collection of sales, historically, has been as follows: 55% of sales collected in the month of sale 7% of sales collected in 2nd month after sale 35% of sales collected in month after the sale 3% of sales are uncollectible (bad debts) Cash collections for September are ________.

Answer 1

Answer:

$188,170

Explanation:

Cash collection in a month includes the collection of current and prior years's of credit sales.  

Cash Collection for September is $188,170.

It includes 7% collection of July sales, It includes 35% collection of August sales and It includes 55% collection of September sales.

Schedule for Cash Collection is attached with this answer please find it.

Download pdf