Swifty Corporation reported the following information for 20

Swifty Corporation reported the following information for 2016:

All sales are on credit.

Customer amounts on account are collected 50% in the month of sale and 50% in the following month.

How much cash will Swifty receive in November?

Solution

D. $1,110,000

Amount of cash Swifty will receive in November:

= ($1,150,000 * 50%) + ($1,070,000 * 50%)

= $575,000 + $535,000

= $1,110,000