Budgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 40% 20% 60% 15% 20% 35% 5% 100% Determine the estimated cash collected on customers' accounts in April.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Budgeting Cash Collections
Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's
operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales)
In month of sale
in month of following sale
Uncollectible accounts, returns, and allowances
Receiving Discount Beyond Discount Period Totals
20%
60%
20%
35%
5%
100%
40%
15%
Determine the estimated cash collected on customers' accounts in April.
Transcribed Image Text:Budgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 20% 60% 20% 35% 5% 100% 40% 15% Determine the estimated cash collected on customers' accounts in April.
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