Figure 9-6 Sorrell Company makes all its sales on account. A…
Figure 9-6 Sorrell Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale: 30% Percent paid in the month after the sale: 60% Percent paid in the second month after the sale: 8% Sorrell provided information on sales as follows: May – $100,000 June – $120,000 July – $130,000 August (expected) – $150,000 Refer to Figure 9-6 above. How much of May’s sales are expected to be uncollectible?