Rich Company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate items (1) through (10) below:
$\begin{array}{ll}&\text { August }&\text {September }&\text {October }&\text {November }\
\text { Sales } & \$ 500,000 & \$ 525,000 &\$ 535,000 & \$ 560,000
\end{array}$

Question

Rich Company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate items (1) through (10) below:
 $\begin{array}{ll}&\text { August }&\text {September }&\text {October }&\text {November }\
\text { Sales } & \$ 500,000 & \$ 525,000 &\$ 535,000 & \$ 560,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Rich Company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate items (1) through (10) below:
 $\begin{array}{ll}&\text { August }&\text {September }&\text {October }&\text {November }\
\text { Sales } & \$ 500,000 & \$ 525,000 &\$ 535,000 & \$ 560,000
\end{array}$

Rich Company's Experience Shows That 20% of Its Sales Are