London Manufacturing Company expects the following sales in January,February,and March:
$$\begin{array}{lcc}
& \underline{\text { Cash Sales }} & & \underline{\text { Credit Sales }} \
\text { January } & \$ 60,000 & & \$ 270,000 \
\text { February } & \$ 50,000 & & \$ 240,000 \
\text { March } & \$ 75,000 & & \$ 355,000
\end{array}$$ The controller has determined that the company collects credit sales as follows: 60% in the month of sale,30% in the first month after sale,5% in the second month after sale,and 5% is expected to be uncollectible.How much cash will be collected from customers in March?

Question

London Manufacturing Company expects the following sales in January,February,and March:
 $$\begin{array}{lcc} 
& \underline{\text { Cash Sales }} & & \underline{\text { Credit Sales }} \
\text { January } & \$ 60,000 & & \$ 270,000 \
\text { February } & \$ 50,000 & & \$ 240,000 \
\text { March } & \$ 75,000 & & \$ 355,000
\end{array}$$ The controller has determined that the company collects credit sales as follows: 60% in the month of sale,30% in the first month after sale,5% in the second month after sale,and 5% is expected to be uncollectible.How much cash will be collected from customers in March?

Quizplus · Accepted Answer

The Answer of London Manufacturing Company expects the following sales in January,February,and March:
 $$\begin{array}{lcc} 
& \underline{\text { Cash Sales }} & & \underline{\text { Credit Sales }} \
\text { January } & \$ 60,000 & & \$ 270,000 \
\text { February } & \$ 50,000 & & \$ 240,000 \
\text { March } & \$ 75,000 & & \$ 355,000
\end{array}$$ The controller has determined that the company collects credit sales as follows: 60% in the month of sale,30% in the first month after sale,5% in the second month after sale,and 5% is expected to be uncollectible.How much cash will be collected from customers in March?

London Manufacturing Company Expects the Following Sales in January,February,and March