June sales were $5,000 while projected sales for July and August were $6,500 and $7,000,respectively.Sales are 35% cash and 65% credit.All credit sales are collected in the month following the sale.What are the total expected collections for July?

Question

Quizplus · Accepted Answer

B)
July Cash Sales $6,500 × 35% = $2,275
Cash Collections on account June 5,000 × 65% = 3,250
Total Collections $5,525

June Sales Were $5,000 While Projected Sales for July and August