Solved: Total cash-inflows from the collection of receivables, Accounting Basics

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Total cash-inflows from the collection of receivables

Problem: Expected total sales:

Month          Sales
January     $25,000
February     30,000
March         35,000
April           40,000

The company expects 70% of its sales to be an account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 72% in the month following the sale with the remainder being uncollectible and written off in the month following the sale. The total cash inflows from the collection of receivables in April would be...?

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Accounting Basics: Total cash-inflows from the collection of receivables

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total cash-inflows from the collection of receivables

Reference No:- TGS01738622

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Reporting criteria between forda and honda using gaap

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Q : Total cash-inflows from the collection of receivables

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total cash-inflows from the collection of receivables

Reference No:- TGS01738622

Recent Questions Asked Accounting Basics

Q : Reporting criteria between forda and honda using gaap

Q : Internal service fund to establish the new fund

Q : Deferred tax liability-current

Q : Differences between variable and absorption costing

Q : Total cash-inflows from the collection of receivables

Q : Surplus of cash before considering cash borrowed

Q : Investment in new equipment

Q : Accounting period faux line

Q : Non-push-down accounting

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