32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in themonth following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,000 29. Use the following information for questions (29 to 32). The following informationpertains to Adel CompanyMonthSalesPurchasesJulyP25,000P10,000August10,0002,500September15,0005,000October12,5004,000November15,0005,000December17,5005,000Forty percent of purchases are paid for in cash in the month of purchase, and the balanceis paid the following month. Cash is collected from customers in the following manner.Month of sales20%Month following sales50%Two months following sales25%Amount uncollectible5%

Answer) Calculation of amount collected in December under the new Policy Amount Collected in…

ected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the new percentages? a. P17,500 b. P18,500 c. P16,290 d. P20,000

ected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the new percentages? a. P17,500 b. P18,500 c. P16,290 d. P20,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Question

32. If Adel allows a 2 percent cash discount if collected in the month of sale, it is
expected that 60 percent will be collected in the month of sale and the balance in the

month following. How much will be collected from customers in December under the new
percentages?
a. P17,500
b. P18,500
c. P16,290
d. P20,000

29. Use the following information for questions (29 to 32). The following information
pertains to Adel Company
Month
Sales
Purchases
July
P25,000
P10,000
August
10,000
2,500
September
15,000
5,000
October
12,500
4,000
November
15,000
5,000
December
17,500
5,000
Forty percent of purchases are paid for in cash in the month of purchase, and the balance
is paid the following month. Cash is collected from customers in the following manner.
Month of sales
20%
Month following sales
50%
Two months following sales
25%
Amount uncollectible
5%

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