E 11. Dacahr Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western

Question:

E 11. Dacahr Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. Henley Turlington, the company controller, is starting to assemble the cash budget for the fourth quarter. Projected sales for the quarter are as follows:

On Account Cash October $452,000 $196,800 November 590,000 214,000 December 720,500 218,400 Cash collection records pertaining to sales on account indicate the following collection pattern:
Month of sale 40%
First month following sale 30 Second month following sale 28 Uncollectible 2 Sales on account during August were $346,000. During September, sales on account were $395,000.
Compute the amount of cash to be collected from customers during each month of the fourth quarter.
Cash Collections

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9780538742801

9th Edition

Authors: Susan V Crosson, Belverd E Needles

Question Posted: