Brief Exercise 219 spar Industries expects credit sales for

Brief Exercise 21-9 spar Industries expects credit sales for January, February, and March to be $201,000, $261,000, and $311,000, 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 anuary February March January February March

Solution

Solution:

Cash collection from Customers
Credit sales	January	February	March
Collection of cash against sales (75% same month, 25% next month):
Cash collection on sales of January	$150,750.00	$50,250.00
Cash collection on sales of February		$195,750.00	$65,250.00
Cash collection on sales of March			$233,250.00
Total Cash Collection	$150,750.00	$246,000.00	$298,500.00