Yax Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. The company's experience is that 40% of sales are cash, and the remainder are on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.
Required:
A. Calculate the expected cash receipts on accounts receivable in August for July sales.
B. Calculate the expected cash receipts on accounts receivable in August for August sales.
C. Calculate the total expected cash receipts on accounts receivable in August.
D. Calculate the total expected cash receipts in August.
E. Calculate how much of July sales are deemed to be uncollectible.

Question

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The Answer of Yax Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. The company's experience is that 40% of sales are cash, and the remainder are on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.
Required:
A. Calculate the expected cash receipts on accounts receivable in August for July sales.
B. Calculate the expected cash receipts on accounts receivable in August for August sales.
C. Calculate the total expected cash receipts on accounts receivable in August.
D. Calculate the total expected cash receipts in August.
E. Calculate how much of July sales are deemed to be uncollectible.

Yax Company Expects Sales of $40,000 in July, $50,000 in August