Luke ltd is preparing its budget for the last quarter of 2012. For each month,...
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Luke ltd is preparing its budget for the last quarter of 2012. For each month, 25% of sales are on credit. Collection for credit sales is expected to be as follows:
In month of sale 60%
1 month after sale 30%
2 months after sale 10%
Sales for the final quarter of 2012 are expected to be:
October $30,000
November $15,000
December $35,000
Accounts receivable at September 2012 were $10,000.
Calculate the estimated cash collections for December.
Luke ltd is preparing its budget for the last quarter of 2012. For each month, 25% of sales are on credit. Collection for credit sales is expected to be as follows:
In month of sale 60%
1 month after sale 30%
2 months after sale 10%
Sales for the final quarter of 2012 are expected to be:
October $30,000
November $15,000
December $35,000
Accounts receivable at September 2012 were $10,000.
Calculate the estimated cash collections for December.
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