Suzie Q's has these projected sales estimates: The company collects 18 percent of its sales in the month of sale, 69 percent in the month following the month of sale, and another 11 percent in the second month following the month of sale. Two percent of sales are never collected. What is the amount of the September collections?

Question

Suzie Q's has these projected sales estimates:  The company collects 18 percent of its sales in the month of sale, 69 percent in the month following the month of sale, and another 11 percent in the second month following the month of sale. Two percent of sales are never collected. What is the amount of the September collections?

Quizplus · Accepted Answer

To calculate the September collections, we need to find the sales that occurred in June (which is three months before September) and apply the given percentages.

June sales = $90,270

18% collected in June = $16,248.60 
69% collected in July = $52,479.30 
11% collected in August = $9,929.70 
2% uncollectible = $1,805.40

Total collections = $79,462.00

Therefore, the amount of September collections is $52,479.30.

Suzie Q's Has These Projected Sales Estimates: the Company