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Lafayette Company's Experience Shows That 20% of Its Sales Are

Question 75

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Lafayette Company's experience shows that 20% of its sales are for cash and 80% are on credit.An analysis of credit sales shows that 50% are collected in the month following the sale,45% are collected in the second month,and 5% prove to be uncollectible.Calculate the following items (1)through (10).
Lafayette Company's experience shows that 20% of its sales are for cash and 80% are on credit.An analysis of credit sales shows that 50% are collected in the month following the sale,45% are collected in the second month,and 5% prove to be uncollectible.Calculate the following items (1)through (10).

Correct Answer:

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(1)20% ∗ $535,000 = $107,000
(2)45% ∗ 80...

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