The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects 70% of its credit sales in the month following sale, 25% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $64,000, $70,000, and $60,000, respectively. What are the company's expected total cash receipts in August?   Multiple Choice   $61,000.   $77,000.   $121,200.   $65,000.   $13,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects 70% of its credit sales in the month following sale, 25% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $64,000, $70,000, and $60,000, respectively. What are the company's expected total cash receipts in August?

 

Multiple Choice
  •  

    $61,000.

  •  

    $77,000.

  •  

    $121,200.

  •  

    $65,000.

  •  

    $13,000.

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