Marga Corporation has the following historical pattern of credit sales 70% during the month of sale 15% in the first month after sale 4% in the third month after sale 1% uncollectible 10% in the second month after sale s on account for the last six months of the year were reported as follows: July P120,000 October P180,000 August 140,000 November 200,000 Septembe 160,000 December 170,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Marga Corporation has the following historical pattern of credit sales
70% during the month of sale
4% in the third month after sale
15% in the first month after sale
1% uncollectible
10% in the second month after sale
Sales on account for the last six months of the year were reported as follows:
July
P120,000
October
P180,000
August
140,000
November
200,000
Septembe
160,000
December
170,000
Required:
1. Compute for the total cash collections during the 4th calendar quarter.
2. A/R balance on the Balance Sheet as of Dec. 31
Transcribed Image Text:Marga Corporation has the following historical pattern of credit sales 70% during the month of sale 4% in the third month after sale 15% in the first month after sale 1% uncollectible 10% in the second month after sale Sales on account for the last six months of the year were reported as follows: July P120,000 October P180,000 August 140,000 November 200,000 Septembe 160,000 December 170,000 Required: 1. Compute for the total cash collections during the 4th calendar quarter. 2. A/R balance on the Balance Sheet as of Dec. 31
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