Credit sales are $92,000 in June and $80,500 in July; 80% are collected in the month of sale and 20% collected in the following month. Total July collections are:

Question

Quizplus · Accepted Answer

Sales collected in July = 80% of $92,000 = $73,600
Sales collected in August = 20% of $92,000 + 80% of $80,500 = $18,400 + $64,400 = $82,800
Total July collections = Sales collected in July = $73,600

Credit Sales Are $92,000 in June and $80,500 in July;