PROBLEM 7-G COLLECTIONS BUDGET 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
PROBLEM 7-G COLLECTIONS BUDGET 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:PROBLEM 7-G COLLECTIONS BUDGET
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
August
September
P120,000
140,000
160,000
October
November
P180,000
200,000
170,000
December
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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