Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July? a. $30,000 b. $60,000 c. $36,000 d. $67,500 e. $80,000
Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July? a. $30,000 b. $60,000 c. $36,000 d. $67,500 e. $80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows:
Percent paid in the month of sale |
35% |
Percent paid in the month after the sale |
54% |
Percent paid in the second month after the sale |
6% |
Alpha provided the following information on sales:
May |
$150,000 |
June |
$125,000 |
July |
$136,000 |
August (expected) |
$142,000 |
How much of June's credit sales is expected to be collected in the month of July?
a.
$30,000
b.
$60,000
c.
$36,000
d.
$67,500
e.
$80,000
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