CASE 3: CREDIT SALES The following details have been obtained from the receivable's records of DEF Company: 1. Invoices paid in the month after the sale: 70% 2. Invoices paid in the second month after sale: 15% 3. Invoices paid in the third month after sale: 10% 4. Bad debts: 5% Customers paying in the month after the sale are allowed a 10% discount. Invoices for sales are issued on the last day of the month in which the sales are made. The budgeted credit sales for the first five months of this year are: Jan Feb Mar Apr May Credit Sales 45,000.00 65,000.00 72,000.00 85,000.00 120,000.00 Required: What are the total budgeted receipts for May from credit sales?
CASE 3: CREDIT SALES The following details have been obtained from the receivable's records of DEF Company: 1. Invoices paid in the month after the sale: 70% 2. Invoices paid in the second month after sale: 15% 3. Invoices paid in the third month after sale: 10% 4. Bad debts: 5% Customers paying in the month after the sale are allowed a 10% discount. Invoices for sales are issued on the last day of the month in which the sales are made. The budgeted credit sales for the first five months of this year are: Jan Feb Mar Apr May Credit Sales 45,000.00 65,000.00 72,000.00 85,000.00 120,000.00 Required: What are the total budgeted receipts for May from credit sales?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...
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