Malaysian Carpets makes all sales on credit,with 60% of the payment received in the month of sale and 40% in the month following sale.Budgeted sales are $$\begin{array} { l l }
\text { February } & \$ 100000 \
\text { March } & \$ 120000
\end{array}$$ What is the estimated amount received from debtors in March?

Question

Malaysian Carpets makes all sales on credit,with 60% of the payment received in the month of sale and 40% in the month following sale.Budgeted sales are $$\begin{array} { l l } 
\text { February } & \$ 100000 \
\text { March } & \$ 120000
\end{array}$$ What is the estimated amount received from debtors in March?

Quizplus · Accepted Answer

In March, Malaysian Carpets will receive 60% of March sales ($120,000 * 60% = $72,000) and 40% of February sales ($100,000 * 40% = $40,000). The total amount received in March is $72,000 + $40,000 = $112,000.

Malaysian Carpets Makes All Sales on Credit,with 60% of the Payment