Question

The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $\$ 606,900$. Of that balance, $\$ 450,000$ represents remaining Accounts Receivable from September billings. The normal collection pattern for the firm is 20 percent of billings in the month of service, 55 percent in the month after service, and 22 percent in the second month following service. The remaining billings are uncollectible. October billings are expected to be $\$ 700,000$. a. What were August billings for Skyscraper Architects? b. What amount of September billings is expected to be uncollectible? c. What are projected cash collections in October 2000 for the firm?

   The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $\$ 606,900$. Of that balance, $\$ 450,000$ represents remaining Accounts Receivable from September billings. The normal collection pattern for the firm is 20 percent of billings in the month of service, 55 percent in the month after service, and 22 percent in the second month following service. The remaining billings are uncollectible. October billings are expected to be $\$ 700,000$.
a. What were August billings for Skyscraper Architects?
b. What amount of September billings is expected to be uncollectible?
c. What are projected cash collections in October 2000 for the firm?

Cost Accounting: Traditions and Innovations

Jesse T. Barfield,… 4th Edition

Chapter 13, Problem 33

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Given that the normal collection pattern for the firm is 20% in the month of service, 55% in the month after service, and 22% in the second month following service, we know that the remaining 3% is uncollectible. The Accounts Receivable balance at October 1 Show more…

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The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $\$ 606,900$. Of that balance, $\$ 450,000$ represents remaining Accounts Receivable from September billings. The normal collection pattern for the firm is 20 percent of billings in the month of service, 55 percent in the month after service, and 22 percent in the second month following service. The remaining billings are uncollectible. October billings are expected to be $\$ 700,000$. a. What were August billings for Skyscraper Architects? b. What amount of September billings is expected to be uncollectible? c. What are projected cash collections in October 2000 for the firm?

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