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

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

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

Answer 1

1)
	Total collections from cash sales for the quarter ending March 31, 2018						$ 95,000
	Working:
			January	February	March		Total
	Sales		$       2,75,000	$       3,25,000	$       3,50,000
	Cash Sales @ 10%		$           27,500	$           32,500	$           35,000		$     95,000
2)
	Total collections from credit sales for the quarter ending March 31, 2018						$ 5,27,625
	Working:			November	December	January	February	March		Total
	Sales			$       3,00,000	$       2,50,000	$ 2,75,000	$ 3,25,000	$ 3,50,000
	Credit Sales @ 90%			$       2,70,000	$       2,25,000	$ 2,47,500	$ 2,92,500	$ 3,15,000
	Collection of credit sales in the month of:
	November			$           27,000
	December			$       2,02,500	$           22,500
	January			$           40,500	$       1,68,750	$     24,750
	February				$           33,750	$ 1,85,625	$     29,250
	March					$     37,125	$ 2,19,375	$     31,500
	Total					$ 2,47,500	$ 2,48,625	$     31,500		$ 5,27,625