What is the amount of cash collection in may ? March, April, and May sales are $100,000, $120,000, and$125,000, respectively. 20% of sales are collected in the monthof sale; 50% are collected in the month following sale, and theremaining 30% are collected in the second month following sale.What is the amount of cash collections in May? Show steps usedin solving the problem.A. $118,500B. $25,000C. $60,000D. $115,000

Step 1: Definition of Cash CollectionsCash collections refer to the cash received from customers in…

Answered: March, April, and May sales are…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
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March, April, and May sales are $100,000, $120,000, and $125,000, respectively. 20% of sales are collected in the month of sale; 50% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $60,000 D. $115,000 Taylor, Inc. had accounts receivable of $430,000 and an allowance for doubtful accounts of $18,200 just before writing off as worthless an account receivable from Burton Company of $1,390. The net realizable value of the accounts receivable before and after the write-off was: A. $411,800 before and $411,800 after. B. $448,200 before and $446,810 after. C. $430,000 before and $428,610 after. D. $411,800 before and $410,410 after. Greene Sisters has a DSO of 15 days. The company's average daily sales are $30,000. Assume there are 365 days in a year. What is the level of its accounts receivable? a. $400,000 b.…
What is the amount of Cash Collection in August?
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