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London Manufacturing Company expects the following sales in January, February, and March: Cash Sales Credit Sales...

London Manufacturing Company expects the following sales in January, February, and March: Cash Sales Credit Sales January $60,000 $270,000 February $50,000 $240,000 March $75,000 $355,000 The controller has determined that the company collects credit sales as follows: 60% in the month of sale, 30% in the first month after sale, 5% in the second month after sale, and 5% is expected to be uncollectible. How much cash will be collected from customers in March? $376,500 $410,000 $291,500 $373,500 Click if you would like to Show Work for this question: Open Show Work

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Answer #1

CASH COLLECTION REPORT OF LONDON MANUFACTORING COMPANY

PARTICULERS JANUARY FEBRUARY MARCH APRIL MAY
CASH SALES 60000 50000 75000
CREDIT SALES 270000 240000 355000
TOTAL SALES 330000 290000 430000
RECIPTS
CASH 60000 50000 75000
CREDIT RECD. 60% IN MONTH OF SALE 162000 144000 213000
CREDIT RECD. 30% IN THE 1ST MONTH AFTER SALES 81000 72000 106500
CREDIT RECD. 5% IN THE 2ND MONTH AFTER SALES 13500 12000 17750
TOTAL CASH RECIVED 222000 275000 373500 118500 17750
UNCOLLECTIBLE 5% 13500 12000 17750

So In the March Cash Collected from Customers = 373500

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