Need Finance Question Solution Pardee Company makes 30% of its sales in cash and 70% on account. 60% of the account sales arecollected in the month of sale, 25% in the month following sale, and 12% in the second monthfollowing sale. The remainder is uncollectible. The following information has been gathered for thecurrent 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: Introduction to the Estimated Cash Collections:The estimated cash collected for a period is…

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

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