Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $60,000 and $50,000, respectively. Analysis of Lowell’s operations indicates that the pattern of customers’ payments on account is as follows (percentages are of total monthly credit sales):
Receiving Discount Beyond Discount Period Totals
In month of sale 40% 20% 60%
In month of following sale 15% 20% 35%
Uncollectible accounts, returns, and allowances 5%
100%
Determine the estimated cash collected on customers’ accounts in April.
$Answer