Question

A store has the following sales for the next three month: May $ 240,000 June $ 200,000 July $ 190,000 Cash sales are 25% and all the remaining credit sales (75%) are collected in the month following the sale. The total amount of cash expected to be collected from customers in July is

Answer 1

Answer:

$197,500

Explanation:

Calculation for July cash collections

Cash collection = $ 190,000 x 25 % + $ 200,000 x 75 %

                           = $197,500

The total amount of cash expected to be collected from customers in July is $197,500.