June sales were $40,000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. What are the expected collections for July?

Question

Quizplus · Accepted Answer

B) Calculations:
$50,000 × 40% = $20,000
$40,000 × 60% = $24,000
$20,000 + $24,000 = $44,000

June Sales Were $40,000 While Projected Sales for July and August