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BE6.13 (LO 5), AP Janssen Cleaners markets its carpet shampooer primarily to new homeowners, suggesting that it will help their carpet last longer. Most
BE6.13 (LO 5), AP Janssen Cleaners markets its carpet shampooer primarily to new homeowners, suggesting that it will help their carpet last longer. Most customers who buy the products agree and are eager to put the new equipment to work. Approximately 3% of customers have a change of heart, however, and return it within the same month of purchase for a full refund. Janssen sells its shampooers for $149 each, while Janssen's supplier charges the company $115 per unit. December sales are expected to be 250 units, and January sales are expected to be 275 units. Determine Janssen's budgeted net sales for the month of December. Determine budgeted cash payments for merchandise purchases for one month [related to BE6.13]. BE6.14 (LO 5), AP Refer to the information from BE6.13. Janssen is fortunate enough to maintain adequate cash, so it takes advantage of a 2% discount by paying within 10 days of the purchase; Janssen makes its purchases at the beginning of each month. Ending inventory is maintained at 20% of the next month's sales. Determine Janssen's budgeted cash payments for purchases in December.
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