Question

Brief Exercise 22-09

Kaspar Industries expects credit sales for January, February, and March to be $209,000, $269,700, and $314,200, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.

Compute cash collections from customers for each month.

		Collections from Customers
Credit Sales		January		February		March
January		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
February		enter a dollar amount		enter a dollar amount		enter a dollar amount
March		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount

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Answer 1

Solution

	Collections from Customers
Credit sales	January	February	March
January	$       156,750.00	$      52,250.00
February		$    202,275.00	$          67,425.00
March			$       235,650.00
	$       156,750.00	$    254,525.00	$       303,075.00