Fine Co. has the following sales forecasts for the third quarter of 2021: P85,000 (July), P88,000 (Aug), P82,000 (Sep). All sales are on credit. Seventy-five percent are collected in the month of sales and remainder is collected the following month. Minimum cash balance is P10,000. How much cash would be collected in August from sales?

Fine Co. has the following sales forecasts for the third quarter of 2021: P85,000 (July), P88,000 (Aug), P82,000 (Sep). All sales are on credit. Seventy-five percent are collected in the month of sales and remainder is collected the following month. Minimum cash balance is P10,000. How much cash would be collected in August from sales?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Fine Co. has the following sales forecasts for the third quarter of 2021: P85,000 (July), P88,000 (Aug), P82,000 (Sep). All sales are on credit. Seventy-five percent are collected in the month of sales and remainder is collected the following month. Minimum cash balance is P10,000. How much cash would be collected in September from sales? A P61,500 P66,000 P87,250 D P83,500
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