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just olya
2 months ago
9

Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the mont

h of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July
Business
1 answer:
marusya05 [3.7K]2 months ago
8 0

Answer:

$67,500

Clarification:

The information given indicates the anticipated cash collection for July as follows:-

Sales in June = $125,000

Percentage collected in the subsequent month = 54%

The calculation for expected cash to be collected in July is indicated below:-

Expected cash collection in July = June sales × Percentage received in the month following the sale

= $125,000 × 54%

= $67,500

Thus, we derived the expected cash collection for July using the previously mentioned equation.

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