ge Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 20% in the month llowing sale, and 17% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current ear: Month Total sales 2 3 4 $70,000 $90,000 $60,000 $40,000 Total cash receipts in Month 4 will be:

ge Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 20% in the month llowing sale, and 17% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current ear: Month Total sales 2 3 4 $70,000 $90,000 $60,000 $40,000 Total cash receipts in Month 4 will be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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