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    rtoland's Avatar
    rtoland Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 28, 2011, 11:18 AM
    I would really appreciate any help with this:cash collections
    May cash sales 20,000 credit sales 40,000
    June cash sales 40,000 credit sales 60,000
    July cash sales 60,000 credit sales 80,000
    August cash sales 80,000 credit sales 100,000
    Collect payments on 50% of credit sales in the month of sale
    40% in the month following sale and 5 % in the second month following the sale
    Compute the total cash collections in July and it's total cash collection in August
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Oct 28, 2011, 12:16 PM
    For Jul cash collection you will take credit sales in May of 40,000 * 5% plus credit sales in Jun of 60,000 * 40% plus Credit sales in Jul of 80,000 * 50% plus cash sales in Jul of 60,000

    For Aug cash collections you will take credit sales in Jun of 60,000 * 5% plus Jul credit sales of 80,000 * 40% plus credit sales in Aug of 100,000 * 50% plus Cash sales in Aug of 80,000
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