15 of sales are collected in the second following month 8


Question - JKL Company expects the following sales and collection pattern for the indicated four months of the year:

Month Cash Sales Credit Sales Total Sales

June $42,000  $82,000  $124,000

July $36,000  $78,000  $114,000

August $41,000  $80,000  $121,000

September $38,000  $83,000 $121,000

8% of credit sales are collected in the same month

72% of sales are collected in the following month

15% of sales are collected in the second following month

What are the projected cash collections for the month of September?

$75,940

$113,940

$118,090

$122,090

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Accounting Basics: 15 of sales are collected in the second following month 8
Reference No:- TGS02607280

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