please explain how you got your answer QUESTION 3 Not complete Points out of 2.0

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please explain how you got your answer

QUESTION 3 Not complete Points out of 2.00 Flag question Budgeting Cash Collections Spencer Consulting, which invoices its clients on terms 2/10, n/3 respectivel (percentages are of total monthly credit sales): 0, had credit sales for May and june of $70,000 and $80,000, ly. Analysis of Spencer's operations indicates that the pattern of customers' payments on account is as follows Beyond Discount Period Totals 20% 70% 1096 2596 1 Receiving Discount 5096 In month of sale In month of following sale . Uncollectible accounts, returns, and allowances 15% 5% 100% Determine the estimated cash collected on customers' accounts in June. $ 0 Check Next page

Explanation / Answer

CASH COLLECTION IN THE MONTH OF JUNE: Cash collected from may sales: Receiving discount (15% of May total sales) 10290 (i.e. $ 70000 *15% -2%) No discount (10% of may sales) 7000 (i.e. $70,000*10%) Cash Collected from June sales: Receiving Dsicount (50% of June sales) 39200 (i.e. 50% of $ 80,000 -2%) No Discount on June sales (20%) 16,000 (i.e. 20% of $80,000) Cash Collected from Customer's account 72490

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