Question

Kaspar Industries expects credit sales for January, February, and March to be $205,100, $263,100, and $314,500, 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.

		Collections from Customers
Credit Sales		January		February		March
January		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
February		enter a dollar amount		enter a dollar amount		enter a dollar amount
March		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount

Answer 1

Particulars			January	Workings	February	Workings	March	Workings
Collection for the month of:
January			$ 1,53,825.00	($ 205100 x 75%)	$    51,275.00	($ 205100 x 25%)
February					$ 1,97,325.00	($ 263100 x 75%)	$    65,775.00	($ 263100 x 25%)
March							$ 2,35,875.00	($ 314500 x 75%)
Total			$1,53,825.00		$2,48,600.00		$3,01,650.00

Is it correct? Please let me know. Thank you