From the following data calculate the estimated cash received from credit sales for October.
Credit sales for August,$10 000;September,$12 000;October,$15 000
Credit sales are normally settled in the pattern,60% in the month of sale and 40% in the month following the sale.

Question

Quizplus · Accepted Answer

- For August credit sales: 60% (=$6,000) is expected to be received in August and 40% (=$4,000) in September. 
- For September credit sales: 60% (=$7,200) is expected to be received in September and 40% (=$4,800) in October. 
- For October credit sales: 60% (=$9,000) is expected to be received in October and 40% (=$6,000) in November. 
Thus, the estimated cash received from credit sales for October is $6,000 + $9,000 = $13,800.

From the Following Data Calculate the Estimated Cash Received from Credit