accounting help 2 447476
Aug 29, 2021 | Uncategorized
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Sales on account for the first two months of the current year are budgeted as follows:
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|
|
|
| Jan. |
$ |
706,000 |
| Feb. |
|
784,000 |
|
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All sales are made on terms of 2/10, n/30 (2% discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows:
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|
|
|
| Collections within the month of sale: |
|
|
| Within discount period |
60 |
% |
| After discount period |
15 |
|
| Collections within the month following sale: |
|
|
| Within discount period |
15 |
|
| After discount period |
7 |
|
| Returns, allowances, and uncollectibles |
3 |
|
|
|
|
| Total |
100 |
% |
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|
|
|
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Compute the estimated cash collections on accounts receivable for the month of February. (Omit the “$” sign in your response.)
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| Estimated cash collections |
$
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