Question
Budgeted sales in Miranda Company over the next four months are given below: September October November December Cash Sales 25,000 50,000 50,000 25,000 Sales on
- Budgeted sales in Miranda Company over the next four months are given below:
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| September | October | November | December |
| Cash Sales | 25,000 | 50,000 | 50,000 | 25,000 |
| Sales on Account | 50,000 | 125,000 | 125,000 | 75,000 |
| Total Sales | 75,000 | 175,000 | 175,000 | 100,000 |
Collections for sales on account follow a stable pattern as follows:
20% are collected in the month of sale,
60% are collected in the month following sale, and
20% are collected in the second month following sale.
Required: Given these data, prepare a cash collections/receipts budget for the quarter ending in December.
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| October | November | December | Quarter Total |
| Cash Sales |
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| On Account Sales |
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| September - % of $50,000 |
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| September - % of $50,000 |
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| October - % of $125,000 |
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| October - % of $125,000 |
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| October - % of $125,000 |
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| November - % of $125,000 |
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| November - % of $125,000 |
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| December - % of $75,000 |
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| TOTAL SALES |
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Accounting
Authors: Carl s. warren, James m. reeve, Philip e. fess
21st Edition
978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004
