Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8% two months after the sale 7% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash

image text in transcribed
image text in transcribed
image text in transcribed
8% two months after the sale 7% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2. Prepare a cash collection budget for December and January, Round all answers up to the nearest dollar December January Cash sales Collection of credit sales: 25% of current month credit sales 60% of prior month credit sales 8% of credit sales two months ago Total collection of credit sales Total cash collections Ahmed Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $906,000 in October, S960,000 in November, S1,030,000 in December, and 028,000 in January. Anmeds sales are 30% cash and 70% credit. The company's collection history indicates that credit sales are collected as follows: 25% in the month of the sale 60% in the month after the sale 8% two months after the sale 7% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit salos yuid UdUW Detween cash and credit sales 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Ahmed Reeds Sales Budget For the Four Months Ended January October November December 271,800 $ 288,000 S 309,000 S 634,200 672,000 721,000 906,000 $ 960.000 $ 1,030,000 $ Cash sales January 277,800 648 200 926,000 Credit sales Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all ahswers up to the nearest dollar Ahmed Reeds Budgeted Cash Collections from Customers For the Months of December and January December January

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What is the difference between economic resource and input?

Answered: 1 week ago

Question

What aspects would it be impossible to capture?

Answered: 1 week ago

Question

Enhance your words with effective presentation aids

Answered: 1 week ago