From the following data calculate the estimated cash received from credit sales during the month of May.Credit sales for March,$25 000; April,$30 000; May,$18 000.
Credit sales are normally settled in the following pattern: 50% in the month of sale,40% in the month following the sale,and 10% in the second month following the sale.

Question

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For May, the estimated cash received from credit sales includes: - 50% of May sales: 0.50 * $18,000 = $9,000 - 40% of April sales: 0.40 * $30,000 = $12,000 - 10% of March sales: 0.10 * $25,000 = $2,500 Adding these amounts gives a total of $23,500.

From the Following Data Calculate the Estimated Cash Received from Credit