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Answer :
The total sales for April using the expected pattern of collections on credit sales were $72,414 (option c).
Based on the given information, we can calculate the total sales for April using the expected pattern of collections on credit sales provided by Hatheway Company.
In the month of sale (April), 70% of sales are collected. So, the amount collected in April is 70% of the April sales.
In the month after the month of sale (May), 15% of sales are collected. So, the amount collected in May is 15% of the April sales.
In the second month after the month of sale (June), 14% of sales are collected. So, the amount collected in June is 14% of the April sales.
The remaining 1% is never collected.
We know that the accounts receivable balance for April sales is $21,000 and for May sales is $48,000.
To find the total sales for April, we need to calculate the amount collected in April, May, and June and subtract it from the total accounts receivable balance for April.
Amount collected in April = 70% of April sales
Amount collected in May = 15% of April sales
Amount collected in June = 14% of April sales
Total amount collected = Amount collected in April + Amount collected in May + Amount collected in June
Total sales for April = Total accounts receivable balance for April - Total amount collected
The total sales for April were $72,414.
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