Exhibit 18-8 Cheroke Company had an accounts receivable balance of $60,000 at December 31, 2011. Projected sales for the first three months of 2012 are:
All sales are credit sales. Cheroke Company usually collects 40% of its sales during the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.
-Refer to Exhibit 18-8. Given the information above, cash collections during January should be:

Question

Exhibit 18-8 Cheroke Company had an accounts receivable balance of $60,000 at December 31, 2011. Projected sales for the first three months of 2012 are:
 All sales are credit sales. Cheroke Company usually collects 40% of its sales during the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.
-Refer to Exhibit 18-8. Given the information above, cash collections during January should be:

Quizplus · Accepted Answer

The Answer of Exhibit 18-8 Cheroke Company had an accounts receivable balance of $60,000 at December 31, 2011. Projected sales for the first three months of 2012 are:
 All sales are credit sales. Cheroke Company usually collects 40% of its sales during the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.
-Refer to Exhibit 18-8. Given the information above, cash collections during January should be:

Exhibit 18-8 Cheroke Company Had an Accounts Receivable Balance of $60,000