Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kessler Service anticipates the following sales revenue over a five - month period: ( Click the icon to view the sales data. ) The company's

Kessler Service anticipates the following sales revenue over a five-month period:
(Click the icon to view the sales data.)
The company's sales are 30% cash and 70% credit.
Its collection history indicates that credit sales are collected as follows:
(Click the icon to view the collections data.)
How much cash will be collected in January? In February? In March? For the quarter in total?
Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar.)
Kessler Service
Cash Collections Budget
For the Months of January through March
January
Cash sales
Collection of credit sales:
25% Month of sale
1238
50% Month after
\table[[2475]]
20% Two months after
990
Total cash collections q,
ta table
25% in the month of the sale
50% in the month after the sale
20% two months after the sale
5% are never collected
\table[[,November,December,,January,,February,March],[s revenue ........ $ $,16,500,11,200,$,15,200,$,13,200,$ 14,400]]Kessler Service anticipates the following sales revenue over a five-month period:
(Click the icon to view the sales data.)
The company's sales are 30% cash and 70% credit.
Its collection history indicates that credit sales are collected as follows:
(Click the icon to view the collections data.)
How much cash will be collected in January? In February? In March? For the quarter in total?
Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar.)
Kessler Service
Cash Collections Budget
For the Months of January through March
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Susan V. Crosson, Belverd E. Needles

8th Edition

9780618777174, 618777180, 618777172, 978-0618777181

More Books

Students also viewed these Accounting questions

Question

Discuss how an AC is designed and implemented.

Answered: 1 week ago