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Kaspar Industries expects credit sales for January, February, and March to be $203,400, $267,600, and $317,300, 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.

Sagot :

Zvikoidn

Answer:

January = $152,550

February = $251,550

March = $304,875

Explanation:

To Compute cash collections from customers follow the given collection history closely :

Month`s receipts = Cash Collected in Month of Sale (75%) + Cash Collected in Month After Sale

Cash Collection Schedule

Month                                               January     February    March

In Month of Sales                           $152,550  $200,700  $237,975

Month After Sale                                    $0       $50,850   $66,900

Total                                                $152,550   $251,550  $304,875

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