In 2021, Chatsworth Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Chatsworth's experience is that 40% of sales are cash, and the remainder is on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month. What are the expected cash receipts on accounts receivable in August for August sales?

In 2021, Chatsworth Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Chatsworth's experience is that 40% of sales are cash, and the remainder is on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month. What are the expected cash receipts on accounts receivable in August for August sales?

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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