Akihiko, a wholesaler in auto spare parts, was preparing his sales budget for the third quarter of
Question:
Akihiko, a wholesaler in auto spare parts, was preparing his sales budget for the third quarter of 2020. Forecast sales are as follows (all values are in thousands of yen):
Sales are 30% cash and 70% on credit. Sixty percent of the credit accounts are collected in the month of sale, 30% in the month following the sale, and 10% in the following month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of July 2020 are ¥150,800 (10% of May credit sales of ¥300,000 and 40% of June credit sales of ¥302,000).
Prepare a schedule showing sales and cash collections for July, August, and September 2020.
Step by Step Answer:
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler