Wellwash Washing Machines makes all sales on credit, with 75% of the payment received in the month of sale, 20% in the month following the sale and 5% never collected. Budgeted sales are:
October $80 000
November $90 000
What is the estimated amount received from debtors in November?

Question

Quizplus · Accepted Answer

In November, Wellwash will receive 75% of November sales ($90,000 * 0.75 = $67,500) and 20% of October sales ($80,000 * 0.20 = $16,000). Total = $67,500 + $16,000 = $83,500.

Wellwash Washing Machines Makes All Sales on Credit, with 75