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Exercise 22-17 (Video) Ivanhoe Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January February March $261,000 250,800 344,000
Exercise 22-17 (Video) Ivanhoe Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January February March $261,000 250,800 344,000 $39,300 43,300 44,000 Ivanhoe's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Ivanhoe's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Prepare a schedule of expected collections from customers for March IVANHOE COMPANY Expected Collections from Customers Total collections (b) Prepare a schedule of expected payments for direct materials for March IVANHOE COMPANY Expected Payments for Direct Materials March Total payments
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