Question
Cordont Ltd. Sales Budget For the Year Ended December 31, 2023 105,000 Units January February March April May June July August September October November December
Cordont Ltd. | |||||||||||||
Sales Budget | |||||||||||||
For the Year Ended December 31, 2023 | |||||||||||||
105,000 Units | January | February | March | April | May | June | July | August | September | October | November | December | Year |
Percent of Annual Sales | 3.00% | 3.00% | 3.00% | 5.00% | 10.00% | 10.00% | 10.00% | 5.00% | 5.00% | 11.00% | 15.00% | 20.00% | |
Expected Sales in Units | 3150 | 3150 | 3150 | 5250 | 10500 | 10500 | 10500 | 5250 | 5250 | 11550 | 15750 | 21000 | 105000 |
Selling Price per Unit ($60.00) | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 | $60.00 |
Total Budgeted Sales | $189,000.00 | $189,000.00 | $189,000.00 | $315,000.00 | $630,000.00 | $630,000.00 | $630,000.00 | $315,000.00 | $315,000.00 | $693,000.00 | $945,000.00 | $1,260,000.00 | $6,300,000.00 |
sales are on a cash and credit basis, with 70% collected during the month of sale, 20% the following month, and 9.5% the month thereafter. 1/2 of 1% of sales are considered uncollectible (bad debt expense). Sales in November and December 2022 are expected to be $712500 and $950000, respectively. Based on the above pattern, this will result in accounts receivable of $347938 on December 31, 2022 which will be collected in January and February 2023.
CREATE AND CALCULATE A CASH COLLECTION SCHEDULE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting And Finance For Your Small Business
Authors: Eric James Burton, Steven M Bragg
1st Edition
9780471323600
