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Posted: July 9th, 2023
Total sales consist of 25% cash sales, 30% credit cards sales and 45% sales on account. The cash sales and cash from credit cards sales are received in the month of sale. Credit card sales are subject to a 4% discount. The cash receipts for sales on account are 70% in the month following the sale and 28% in the second month after the sale. The remaining 2% are estimated to be uncollectable.DangCorpâs month end inventory requirement for computer hardware units is 30% of the next monthâs sales. The purchase price is $1800 per unit. Approximately60% of the purchases in a month are paid in that month and the rest paid in the following month.Selling and administration expenses are equal to 10% of the current monthâs sales, including $2000 of depreciation. These expenses are paid as incurred.Required: make schedule of cash collections in April
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