Answer:
Instructions are below.
Explanation:
Giving the following information:
Cash collection= 20% of a month's sales in the month of sale
Account sales= 70% in the month following sale, and 6% in the second month following sale.
The remainder is uncollectible.
We weren't provided with information regarding sales. I can invent some numbers to show how it's done.
Sales:
February= 200,000
March= 188,000
April= 213,000
Cash collection:
Sales in cash April= (213,000*0.2)= 42,600
Sales on Account March= (188,000*0.7)= 131,600
Sales on Account February= (200,000*0.06)= 12,000
Total cash April= $186,200
