Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
January= $18,500
February= $16,000
March= $11,000.
All sales are made on open credit with 70% collected in the month of sales and 30% collected in the following month.
Cash collection= sales for the month*0.7 + cash from the month before
February:
From february= 16,000*0.7= $11,200
From January= 18,500*0.3= $5,550
Total= $16,750
March:
From March= 11,000*0.7= $7,700
From February= 16,000*0.3= $4,800
Total= $12,500
