Reference no: EM131865393
Question - The cash sales and credit sales projected for Sarah's Kitchen are as follows:
Jan Feb March April May
Cash 17,000 19,640 16,200 15,380 17,390
Credit 40,000 42,000 48,000 50,000 49,500
If Collections of credit sales are 70% for the first month and 30% for the second month, what would be the cash receipts for March, April and May?
Using this same data, if Sarah's kitchen has a 1% bad debt allowance and can collect only 29% of accounts receivable the second month, what would be the cash receipts for March, April and May?
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