Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for Page's first year of operations:
$$\begin{array} { | l | c | c | c | c | }
\hline \text { Month } & 1 & 2 & 3 & 4 \
\hline \text { Total sales } & \$ 60,000 & \$ 70,000 & \$ 50,000 & \$ 30,000 \
\hline
\end{array}$$
Total cash receipts in Month 3 will be:

Question

Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for Page's first year of operations:
$$\begin{array} { | l | c | c | c | c | } 
\hline \text { Month } & 1 & 2 & 3 & 4 \
\hline \text { Total sales } & \$ 60,000 & \$ 70,000 & \$ 50,000 & \$ 30,000 \
\hline
\end{array}$$
Total cash receipts in Month 3 will be:

Quizplus · Accepted Answer

The Answer of Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for Page's first year of operations:
$$\begin{array} { | l | c | c | c | c | } 
\hline \text { Month } & 1 & 2 & 3 & 4 \
\hline \text { Total sales } & \$ 60,000 & \$ 70,000 & \$ 50,000 & \$ 30,000 \
\hline
\end{array}$$
Total cash receipts in Month 3 will be:

Page Company Makes 30% of Its Sales for Cash and 70