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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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