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pantera1 [17]
3 years ago
14

The Eccleston Company has the following budgeted sales: January $40,000, February $60,000, and March $50,000. 40% of the sales a

re for cash and 60% are on credit. For the credit sales, 50% of the amount is collected in the month of sale, and 50% in the next month. The total expected cash receipts during March are
Business
1 answer:
zvonat [6]3 years ago
8 0

Answer:

Total cash collection= $53,000

Explanation:

Giving the following information:

Sales:

February $60,000

March $50,000.

Cash:

40% of the sales are in cash.

Credit sales:

50% in the month of sale

50% in the next month

<u>Cash receipts March:</u>

Sales in cash March= (50,000*0.4)= 20,000

Sales on account March= (50,000*0.6)*0.5= 15,000

Sales on Account February= (60,000*0.6)*0.5= 18,000

Total cash collection= $53,000

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