Search Engine Corp The Collection Policy of the Company Is to Collect 20

question 98

Essay

Search Engine Corp.has provided the following details concerning budgeted sales:
Budgeted Sales
$$\begin{array} { l l } \text { Jan } & \$ 75,000 \\\text { Feb } & 69,000 \\\text { March } & 80,000 \\\text { April } & 62,000 \\\text { May } & 80,500 \\\text { June } & 92,000\end{array}$$ The collection policy of the company is to collect 20% in the month of sale,40% in the following month,and remaining 40% in the second month after the month of sale.All sales are made on account.
Calculate the cash receipts from customers for the first six months.

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Definitions:

Risk Of Loss

A legal term referring to the responsibility for damage or loss of goods, typically determining who bears the risk at various points during a transaction.

Possession

The state or fact of owning or holding something in one’s control, typically physical objects, but can also refer to rights.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing the law of sales and other commercial transactions.

Common Law

A legal system characterized by judicial decisions based on customs and prior judicial judgments, rather than by written statutes or codes.