Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Management Posted 09 Feb 2018 My Price 8.00

Esplanade Company

10-43    Accounts Receivable Collections Esplanade Company’s credit sales have the following historical pattern:

 

 

 

 

70 percent collected in the month of sale

 

15 percent collected in the first month after month of sale

 

10 percent collected in the second month after month of sale 4 percent collected in the third month after month of sale

 

1 percent uncollectible

 

 

 

 

The following sales on open account (credit sales) have been budgeted for the last six months in 2010:

 

 

 

July

$60,000

October

90,000

August

70,000

November

100,000

September

80,000

December

85,000

 

 

 

Required

 

1.    Determine the estimated total cash collections from accounts receivable during October 2010.

 

2.    Compute the estimated total cash collections during the fourth quarter from credit sales of the fourth quarter.

 

 

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 09 Feb 2018 11:02 PM My Price 8.00

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