Emerald Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, Emerald Company has the following accounts receivable balances: From April sales $21,000 From May
sales 48,000 Emerald's expected sales for June are $150,000 . What were total sales for April?
a. $150,000
b. $72,414
c. $70,000
d. $140,000
D
Balance in A/R from April sales: $21,000/0.15 = $140,000
15% represents the amount of April receivables uncollected at the end of May.
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Fill in the blank(s) with the appropriate word(s).
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