Question

Kam Department Store reported the following information for 2013:October $1,240,000 November $1,160,000 December $1,440,000All sales are on credit.Customer amounts on account are collected 50% in the month of sale and 50% in the following month.How much cash will Kam receive in November?

Answer 1

Answer:

Cash received November is $1200000

Explanation:

Given data

October sales = $1,240,000

November sales = $1,160,000

December sales = $1,440,000

to find out

cash receive in November

solution

we know that there are 3 month sales money given

and we have find in November and amounts on account collected 50% in month of sales

so cash receive = October sales x 0.5 + November sales  x 0.5

put the value we get

Cash received November = $1,240,000 x 0.5 + $1,160,000 x 0.5

Cash received November is $1200000