Question

Given the following information for Nugget Corporation, answer the questions below.

November December January February March Sales $300,000 $250,000 $275,000 $325,000 $350,000

Cash collected in month of sale 10% Credit collections: Collected in month of sale 10% Collected in month following the sale 75% Collected in second month following the sale 15%

Each question should have one amount in the answer field.

You must format your answers as follows: $x,xxx

1 Total collections from cash sales for the quarter ending March 31, 2018.

2 Total collections from credit sales for the quarter ending March 31, 2018.

Answer 1

	January	Febuary	March	Total
Total collections from cash sales	$               27,500.00	$              32,500.00	$                3,500.00	$      63,500.00
Total collections from credit sales	$           2,34,000.00	$          2,48,625.00	$          2,88,000.00	$ 7,70,625.00

Working:

	January	Febuary	March	Total
Cash Sale	$               27,500.00	$              32,500.00	$                3,500.00	$      63,500.00
Credit Sale				$                     -
Collection of November Credit Sale	$               40,500.00			$      40,500.00
Collection of December credit sale	$           1,68,750.00	$              33,750.00		$ 2,02,500.00
Collection of January credit sale	$               24,750.00	$          1,85,625.00	$             37,125.00	$ 2,47,500.00
Collection of febuary crdit sale		$              29,250.00	$          2,19,375.00	$ 2,48,625.00
Collection of March credit sale			$             31,500.00	$      31,500.00
	$           2,61,500.00	$          2,81,125.00	$          2,91,500.00	$ 8,34,125.00