Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The management of Horton Company estimates that credit sales for August, September, October, and November will be $270,000, $375,000, $420,000, and $240,000, respectively
The management of Horton Company estimates that credit sales for August, September, October, and November will be $270,000, $375,000, $420,000, and $240,000, respectively. Experience has shown that collections are made as follows.In month of sales25%In first month after sale60%In second month after sales10%
Collections from Customers October November
August Sales($270,000 × .10) $ 27,000 $ -0-
September Sales
($375,000 × .60) 225,000
($375,000 × .10) 37,500
October Sales
($420,000 × .25) 105,000
($420,000 × .60) 252,000
November Sales ($240,000 × .25) -0- 60,000
Total collections $357,000 $349,500
