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Can you please explain me this Problem? The Plumbing Warehouse uses the accrual basis of accounting. The September 30.2029 accounts receivable, net balance was $360,000.
Can you please explain me this Problem?
The Plumbing Warehouse uses the accrual basis of accounting. The September 30.2029 accounts receivable, net balance was $360,000. Assume rhal the S360.000 will be collected in October, 2029. Collections from customers are to 80% in the month of sale and 20% in the month following the sale. Merchandise purchses expected to be paid in cash in each of October, and December are anticipated to be equal to 65% of that month's budgeted sales. General and administrative expenses are projected to be for the last quarter of 2029. The breakdown of these expenses is presented below. All expenditures are paid uniformly throughout the last quarter, except the prolkrty taxes, which are paid at the end of each quarter. Last Quarter 2029 - Forecasted General & Administrative Cost} Salaries & Fringe Benefits Advertising Insurance Property Taxes Depreciation $555.000 $150.000 $90,000 $100,000 S*4.ooo S 126,000 105.000
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