* Use the following information to solve the following two questions. 8. (2point

Question

* Use the following information to solve the following two questions. 8. (2points) A company has budgeted sale units are as follows: July August September $20,000 $24,000 $30,000 One-half of sales are cash sales and one-half of sales are credit sales. The company collects cash from credit sales over two months (30% in the month of sale, and 70% in the month following sale). During September, the company's expected cash collections from sales are how much? $ 9. (2points) Use the same information given in the above question. At the end of September, the company's Accounts receivable will f what amount? S

Explanation / Answer

8 September Total sales 30000 Cash sales 15000 Credit sales 15000 Collection Cash sales 15000 Current month 4500 (15000*30%) August month 8400 (24000*50%*70%) Total collection 27900 9 Credit sales for september 15000 Percentage uncollected 70% Accounts receivable at end of september 10500 (15000*70%)

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