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Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.

Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.

FINANCIAL ACCOUNTING
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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Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.
Transcribed Image Text:Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.
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