How do you work out this Cash Collection Schedule in Accounting?

Total sales for January are $75,000, and 20% of these are cash sales. If you offered a discount of 10% on cash sales, how much cash would you receive in January?





A $7,500


B $13,500


C $15,000|||The answer is B:





Total Cash Sales:


$75,000 x .20 = $15,000





However, you gave a discount of 10% on those cash sales.


$15,000 x .10 = $1,500





Net Cash Sales = $15,000 - $1,500 = $13,500





Good luck in your studies,


~ Mitch ~|||20% of 75,000 = 15,000





10% of 15,000 = 1,500





15,000 - 1,500 = 13,500





B) $13,500