Fredder Company usually sells about 20% of its merchandise during a month for cash with the remaining sales on account. The company's accounts receivable payment history is as follows: 30% in the month of sale, 50% in the month following, and 15% in the second month following sale. Total budgeted sales for the second quarter are as follows:
$$\begin{array} { l r }
\text { April } & \$ 100,000 \
\text { May } & 120,000 \
\text { June } & 80,000
\end{array}$$ Assume all questions relate to the month of June.

Question

Fredder Company usually sells about 20% of its merchandise during a month for cash with the remaining sales on account. The company's accounts receivable payment history is as follows: 30% in the month of sale, 50% in the month following, and 15% in the second month following sale. Total budgeted sales for the second quarter are as follows:
 $$\begin{array} { l r } 
\text { April } & \$ 100,000 \
\text { May } & 120,000 \
\text { June } & 80,000
\end{array}$$ Assume all questions relate to the month of June.

Quizplus · Accepted Answer

The Answer of Fredder Company usually sells about 20% of its merchandise during a month for cash with the remaining sales on account. The company's accounts receivable payment history is as follows: 30% in the month of sale, 50% in the month following, and 15% in the second month following sale. Total budgeted sales for the second quarter are as follows:
 $$\begin{array} { l r } 
\text { April } & \$ 100,000 \
\text { May } & 120,000 \
\text { June } & 80,000
\end{array}$$ Assume all questions relate to the month of June.

Fredder Company Usually Sells About 20% of Its Merchandise During April $100,000 May 120,000 June 80,000\begin{array} { l r } \text { April } & \$ 100,000 \\\text { May } & 120,000 \\\text { June } & 80,000\end{array} April May June ​$100,000120,00080,000​

Fredder Company Usually Sells About 20% of Its Merchandise During $\begin{array} { l r } \text { April } & \$ 100,000 \\\text { May } & 120,000 \\\text { June } & 80,000\end{array}$