None A company has given the sales details for the first half of the year as follows:Ksh. 000January 460,000February 630,000March 784,000April 930,000May 1,190,000June1,370,00010% of sales are for cash and the balance is on credit. Of the credit sales, 42% iscollected in the month of sale; 50% one month later; 7%, two months later and thebalance is unrecoverable and therefore written off as bad debts.Required:Calculate the debtor's collection (in ksh.000) for the month of June.OA. Ksh 1,087,290B. Ksh 1,071,000OC. Ksh 896,292OD. Ksh 1,233,000D

When we collect revenue from the debtors or accounts receivsble it is known as debtors collection.

January 460,000 February 630,000 March 784,000 April 930,000 May 1,190,000 June 1,370,000 10% of sales are for cash and the balance is on credit. Of the credit sales collected in the month of sale; 50% one month later; 7%, two months late balance is unrecoverable and therefore written off as bad debts. Required: Calculate the debtor's collection (in ksh.000) for the month of June.

January 460,000 February 630,000 March 784,000 April 930,000 May 1,190,000 June 1,370,000 10% of sales are for cash and the balance is on credit. Of the credit sales collected in the month of sale; 50% one month later; 7%, two months late balance is unrecoverable and therefore written off as bad debts. Required: Calculate the debtor's collection (in ksh.000) for the month of June.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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