Ask Question
7 May, 12:52

Funcycle Manufacturing's budget includes the following credit sales for the current year: September, $145,000; October, $136,000; November, $120,000; December, $157,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 50% in the first month after sale, and 35% in the second month after sale. What are the cash collections of credit sales in the month of December?

+2
Answers (1)
  1. 7 May, 16:27
    0
    The cash collections of credit sales in the month of December are $131,150

    Explanation:

    The cash collections of credit sales in the month of December = 15% of credit sales in December + 50% of credit sales in November + 35% of credit sales in October

    Funcycle Manufacturing's budget includes the credit sales: October, $136,000; November, $120,000; December, $157,000

    Therefore,

    Cash collected in December = 15%x$157,000 + 50%x$120,000 + 35%x$136,000 = $131,150
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Funcycle Manufacturing's budget includes the following credit sales for the current year: September, $145,000; October, $136,000; November, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers