The Arauz Company is preparing a cash receipts schedule for the first quarter of 2005. Sales for
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The Arauz Company is preparing a cash receipts schedule for the first quarter of 2005.
Sales for November and December 2004 are expected to be \($30,000\) and \($50,000\), respectively.
Budgeted sales for the first quarter of 2005 are presented here.
Fifteen percent of sales are for cash, the remaining 85 percent are on account. Twenty percent of the sales on account are collected in the month of the sale, 50 percent in the month following the sale, and the remaining 30 percent in the second month following the sale.
There are no uncollectible accounts receivable.
Required: Prepare a cash receipts schedule for the first quarter of 2005.
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Related Book For
Introduction To Management Accounting A User Perspective
ISBN: 9780130327505
2nd Edition
Authors: Michael L Werner, Kumen H Jones
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