June sales were $5,000 while projected sales for July and August were $6,500 and $7,000, respectively. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. What are the expected collections for July?

Question

Quizplus · Accepted Answer

Expected collections for July include 30% of July's sales ($6,500 * 0.30 = $1,950) and 70% of June's sales ($5,000 * 0.70 = $3,500), totaling $5,450.

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