Question

Credit collections are ​% two months following the​ sale, ​% in the month following the​ sale, and ​% in the month of sale. The remaining ​% is expected to be uncollectible. What is the total cash received in April from the April sales at Feeney​ Furniture?

Answer 1

Answer: $‭49,120‬

Step-by-step explanation:

Given the collection strategy listed, the total cash received in April would be

= Cash sales for April + (30% * March credit sales) + ( 62% of April credit sales)

= 39,000 + ( 0.3 * 11,000 ) + ( 0.62 * 11,000)

= 39,000 + 3,300 + ‭6,820‬

= $‭49,120‬