For item numbers 34 to 37:The estimated sales and purchases for 3 months are given below. Sales are collected over a 3-month period in the following ratio: 10% in the month of sale, 50% collected in the month after sale, and 40% in the second month after sale. Purchases are paid 20% on the month of purchase, 40% on the following month after purchase and 40% on the second month following purchase.

For item numbers 34 to 37:The estimated sales and purchases for 3 months are given below. Sales are collected over a 3-month period in the following ratio: 10% in the month of sale, 50% collected in the month after sale, and 40% in the second month after sale. Purchases are paid 20% on the month of purchase, 40% on the following month after purchase and 40% on the second month following purchase.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...

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Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
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