June sales were $6,000 while projected sales for July and August were $8,500 and $7,000,respectively.All credit sales are collected in the month following the sale.Sales are 75% credit and 25% cash.What are the total expected collections for July?

Question

Quizplus · Accepted Answer

D)
July Cash Sales $8,500 × 25% = $2,125
Cash Collections on account June 6,000 × 75% = 4,500
Total Collections $6,625

June Sales Were $6,000 While Projected Sales for July and August