Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Emerald Company has the following accounts receivable balances:
From April sales $ \$ 21,000 $
From May sales 48,000
Emerald's expected sales for June are $150,000.What were total sales for April?

Question

Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Emerald Company has the following accounts receivable balances:
From April sales                                  $ \$ 21,000 $
From May sales                                    48,000
Emerald's expected sales for June are $150,000.What were total sales for April?

Quizplus · Accepted Answer

The Answer of Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.At the end of May,Emerald Company has the following accounts receivable balances:
From April sales                                  $ \$ 21,000 $
From May sales                                    48,000
Emerald's expected sales for June are $150,000.What were total sales for April?

Emerald Company Has the Following Expected Pattern of Collections on Credit