April Co. receives payment from customers for credit sales as follows:
30% in the month of sale.
60% in the month following sale.
8% in the second month following the sale.
2% become bad debts and are never collected.
The following sales are expected:
|
January |
£100,000 |
|
February |
£120,000 |
|
March |
£110,000 |
- Calculate how much will be received in March.
- What is the value of receivables at the end of March?