The company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, the company has the following accounts receivable balances From April sales P21.00 From May sales P48.000 The company's expected sales for June are P150,000. How much cash will the company to collect in June?
The company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, the company has the following accounts receivable balances From April sales P21.00 From May sales P48.000 The company's expected sales for June are P150,000. How much cash will the company to collect in June?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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The company has the following expected pattern of collections on credit sales 70 percent
collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, the company has the following accounts receivable balances
From April sales P21.00
From May sales P48.000
The company's expected sales for June are P150,000. How much cash will the company to collect in June?
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