Question
The management of Clarence Industries has found in the past that customers of the business pay...
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.
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