June sales were $33,000,while projected sales for July and August were $45,000 and $69,000,respectively.Sales are 40% cash and 60% credit.All credit sales are collected in the month following the sale.Calculate expected collections for July.
A) $19,800
B) $37,800
C) $18,000
D) $40,200

Question

Quizplus · Accepted Answer

- June sales = $33,000 
- Projected sales for July = $45,000, of which 60% is credit sales = $27,000 
- Expected credit sales collected in August = $27,000 
- Expected cash sales in July = 40% of $45,000 = $18,000 
Therefore, expected collections for July = cash sales in July + credit sales collected in July 
= $18,000 + $0 (since all credit sales are collected in August) 
= $18,000 
Therefore, the correct answer is B) $37,800.

June Sales Were $33,000,while Projected Sales for July and August