7.1The I. M. Broke Co. has the following collection pattern for its accounts receivable:40 percent in the month of saleliw 50 percent in the month following the sale8 percent in the second month following the sale Snsrti i TOOs 0E lnqA is basd2 percent uncollectiblea The company has recent credit sales as follows:April:Мay:is balnolw od unl sot 000,ase3 ponP200,000d funns 420,000 budbirinenanovni gnibre bnseros 0EToy lenell June: lg a (elinu ni350,000iged gintwollohInstruction: Determine the expected collections on its receivable for the month of June.

Business organizations are required to sell their goods on a credit basis. Out of the credit sales…

The I. M. Broke Co. has the following collection pattern for its accounts receivable: 40 percent in the month of sale 50 percent in the month following the sale 8 percent in the second month following the sale ts 2 percent uncollectible The company has recent credit sales as follows: April: May: lmell June: P200,000 n420,000 s (elinu ni350,000 nvni gnibe bns Instruction: Determine the expected collections on its receivable for the month of June.

The I. M. Broke Co. has the following collection pattern for its accounts receivable: 40 percent in the month of sale 50 percent in the month following the sale 8 percent in the second month following the sale ts 2 percent uncollectible The company has recent credit sales as follows: April: May: lmell June: P200,000 n420,000 s (elinu ni350,000 nvni gnibe bns Instruction: Determine the expected collections on its receivable for the month of June.

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

7.1
The I. M. Broke Co. has the following collection pattern for its accounts receivable:
40 percent in the month of sale
liw 50 percent in the month following the sale
8 percent in the second month following the sale Snsrti i TOOs 0E lnqA is basd
2 percent uncollectible
a The company has recent credit sales as follows:
April:
Мay:
is bal
no
lw od unl sot 000,as
e3 pon
P200,000
d funns 420,000 budbirinen
anovni gnibre bns
eros 0E
Toy lenell June: lg a (elinu ni350,000
iged gintwolloh
Instruction: Determine the expected collections on its receivable for the month of June.

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