ge Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 20% in the month llowing sale, and 17% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current ear: Month Total sales 2 3 4 $70,000 $90,000 $60,000 $40,000 Total cash receipts in Month 4 will be:

ge Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 20% in the month llowing sale, and 17% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current ear: Month Total sales 2 3 4 $70,000 $90,000 $60,000 $40,000 Total cash receipts in Month 4 will be:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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