Question
Cash Sales Credit Sales July. 50,000 150,000 August 55,000 170,000 September 45,000 130,000 October 50,000 145,000 November 60,000 200,000 December. 80,000 350,000 The company is
| Cash Sales | Credit Sales | |
| July. | 50,000 | 150,000 |
| August | 55,000 | 170,000 |
| September | 45,000 | 130,000 |
| October | 50,000 | 145,000 |
| November | 60,000 | 200,000 |
| December. | 80,000 | 350,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on credit sales: 60% in month of sale 30% in month following sale 10% in second month following sale Assume that the accounts receivable balance on July 1 was 75,000. Of this amount, 60,000 represented uncollected June sales and 15,000 represented uncollected May sales. Given these data, the total cash collected during July would be:
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Audit Criteria For Electronic Document Management Processes And Associated IT Solutions
Authors: Alexander D Balzer, Dr Klaus-Peter Elpel, Volker Feist
5th Edition
3932898281, 978-3932898280
