Question
M. Mech Company estimated the following sales and expected cash collection below: March 75,500 April 95,500 May10,500 June 125,500 Collection of SalesIn the month of
M. Mech Company estimated the following sales and expected cash collection below:
March 75,500
April 95,500
May10,500
June 125,500
Collection of SalesIn the month of sale:25%
In the month following the sale:45%
In the two months following thesale:30%
To guard against inventory shortages, M. Mech requires that 30% of the next month's sales be on hand at theend of each month. Determine budgeted cash collections for May and Account Receivable at the end of thequarter.
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Auditing and Assurance Services
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
7th edition
978-1259573286, 1259573281, 978-1260152166
