Question - The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2017. Forty percent of the company's customer's pay in cash the rest are credit customers. The collection pattern for the credit customers is 20% in the month of the sale and 80% in the following month. They have zero uncollectible accounts. Estimated total sales are as follows:
August $70,000
September $80,000
October $85,000
November $90,000
a. What is Yoda's cash collections for September, October, and November?
- September cash collections:
- October cash collections:
- November cash collections:
b. The accounts receivable balance at the end of November will be: