The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale
70% in month following sale
4% in second month following sale
1% uncollectible
The following sales have been budgeted:
What would be the cash collections in June?
A) $110,000.
B) $111,500.
C) $113,400.
D) $115,500.

Question

The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale
70% in month following sale
4% in second month following sale
1% uncollectible
The following sales have been budgeted: 
What would be the cash collections in June?
A) $110,000. 
B) $111,500. 
C) $113,400. 
D) $115,500.

Quizplus · Accepted Answer

The Answer of The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale
70% in month following sale
4% in second month following sale
1% uncollectible
The following sales have been budgeted: 
What would be the cash collections in June?
A) $110,000. 
B) $111,500. 
C) $113,400. 
D) $115,500.

The PDQ Company Makes Collections on Credit Sales According to the Following