Question

April May June Sales* $264,000 $198,000 $298,800 Cash receipts: From cash sales $132,000 $99,000 $149,400 From...

April May June
Sales* $264,000 $198,000 $298,800
Cash receipts:
From cash sales $132,000 $99,000 $149,400
From sales on account† 280,500 112,200
Total cash receipts $412,500 $211,200

*Half of each month’s sales are on account. March sales amounted to $198,000.

†60% of credit sales is collected in the month of sale; 40% is collected in the following month.

Homework Answers

Answer #1
March April May June July
Sales 198000 264000 198000 298800
a) 50 % is Cash sales 99000 132000 99000 149400
b) 50 %Credit sales 99000 132000 99000 149400
c) 60 % of Credit sales is collected in month of sale 59400 79200 59400 89640
(99000* 0.60) (132000* 0.60) (99000* 0.60) (149400* 0.60)
d) 40 % of Credit sales is collected in following month 0 39600 52800 39600 59760
(99000* 0.40) (132000* 0.40) (99000* 0.40) (149400* 0.40)
Total Cash Receipts 158400 250800 211200 278640 59760
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