The management of Clarence Industries has found in the past that customers of the business pay 50% of their accounts from credit sales in the month following the sale, and 40 % in the second month. The remaining 10% of accounts are usually collected in the third month.
The following table shows the credit sales of the business:
Actual Sales |
April |
15600 |
May |
14500 |
|
June |
12800 |
|
Estimated Sales |
July |
16100 |
August |
11200 |
|
September |
12600 |
Required:
Prepare a schedule to show estimated cash collections from customers for the months of July, August and September.
Solution:
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