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anyanavicka [17]
2 years ago
11

Kaspar Industries expects credit sales for January, February, and March to be $205,100, $263,100, and $314,500, respectively. It

is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
January
February
March
Business
1 answer:
SVETLANKA909090 [29]2 years ago
7 0

Answer:

January $153,825

February $248,600

March $301,650

Explanation:

Computation for cash collections from customers for each month:

January February March

January: ($205,100 x 75%=$153,825) ($205,100 x 25%=$51,275) $0

February: $0 ($263,100 x 75%= $197,325) ($263,100 x 25%=$65,775)

March: $0 $0 ($314,500 x 75%=$235,875)

TOTAL $153,825 $248,600 $301,650

Therefore cash collections from customers for each month is :

January $153,825

February $248,600

March $301,650

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