The following table represents the credit sales of Seneca Foods for the first five months of the current year:
According to their records, the company is expecting to receive payments for credit sales as follows: 60% in the month of sale, 20% in the first month after the sale, 15% in the second month after the sale, and the remainder becomes uncollectible. Calculate the amount of uncollectible accounts for Seneca as a result of these credit sales.

Question

The following table represents the credit sales of Seneca Foods for the first five months of the current year:
 According to their records, the company is expecting to receive payments for credit sales as follows: 60% in the month of sale, 20% in the first month after the sale, 15% in the second month after the sale, and the remainder becomes uncollectible. Calculate the amount of uncollectible accounts for Seneca as a result of these credit sales.

Quizplus · Accepted Answer

Budgeted Uncollectible = Budgeted Credit Sales F1F1F1S1?F1F1F10 Budgeted Credit Collections = ($40,000 + $55,000 + $45,000 + $51,000 + $55,000) F1F1F1S1?F1F1F10 ($147,600 + $49,200 + $36,900) = $246,000 F1F1F1S1?F1F1F10 $233,700 = $12,300.
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The Following Table Represents the Credit Sales of Seneca Foods