Solved

Monarch, LLC Is a Graphic Design Business That Specializes Providing

Question 138

Essay

Monarch, LLC is a graphic design business that specializes providing services to other small businesses. A large majority of their customers have set up accounts to where they will pay their bill for services in the month following when the service was rendered while other customers will pay as the work is completed. Monarch estimates that it will collect 25% of its sales in the month it occurs, 55% of its sales in the following month, 15% in the second month after the sale, and they will write off the remaining 5% as uncollectible at the end of the second month after the sale. Their credit sales have been as follows: April, $5,600; May, $9,200; June, $4,300; and July, $2,800. Please answer the following questions:
a. What will the total cash collected during May be?
b. What will the total cash collected during June be? How much of this total came from sales during previous month(s)?
c. How much of their sales will they write off during the month of July?

Correct Answer:

verifed

Verified

blured image a. The amount of cash collected during ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents