Whitney s Inc sells on terms of 5 discount for cash and

Last updated: 3/23/2024

Whitney s Inc sells on terms of 5 discount for cash and carry or 2 10 n 30 and estimates its total sale second calendar quarter of next year as follows April 900 000 May 720 000 and June 1 080 000 An ar operations indicates the following customer collection patterns In month of sale Cash at time of sale On account during discount period Portion of Total Sales 25 15 10 On account after discount period In month following sale On account during discount period 20 On account after discount period 10 In second month following sale On account after discount period 15 Average portion uncollectible 5 100 Prepare an estimate of the cash to be collected from customers during June Estimated Collections from Customers in June April Sales On account no discount May Sales On account no discount On account with discount June sales On account no discount On account with discount Cash Total estimated June collections