Answer:
Results are below.
Explanation:
Giving the following information:
May $380,000 June 420,000 July 580,000
All sales are on account. Of sales on account, 51% are expected to be collected in the month of the sale, 44% in the first month following the sale, and the remainder in the second month following the sale.
We need to calculate the cash collection for May, June, and July.
<u>Cash collection May:</u>
Sales on account from May= 380,000*0.51= 193,800
<u>Cash collection June:</u>
Sales on account from May= 380,000*0.44= 167,200
Sales on account from June= 420,000*0.51= 214,200
Total cash collection= $381,400
<u>Cash collection July:</u>
Sales on account from May= 380,000*0.09= 34,200
Sales on account from June= 420,000*0.44= 184,800
Sales on account from July= 580,000*0.51= 295,800
Total cash collection= $514,800
