Need answer the accounting question not use ai Pardee Company makes 30% of its sales in cash and 70% on account.60% of the account sales are collected in the month of sale, 25%in the month following sale, and 12% in the second monthfollowing sale. The remainder is uncollectible. The followinginformation has been gathered for the current year:Sales Month 1 $65,000Sales Month 2 $70,000Sales Month 3 $50,000Sales Month 4 $30,000Total cash receipts in Month 4 will be:a. $38,000.b. $47,900.c. $27,230.d. $36,230.

Step 1: Define Estimated Cash CollectionsThe estimated cash collected for a period is based on the…

Answered: Pardee Company makes 30% of its sales…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PA: Fitbands estimated sales are: What are the balances in accounts receivable for January, February,...

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Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
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