Question
Magna Corporation has prepared the following sales budget: Month Cash Sales Credit Sales Jan $16,000 $68,000 Feb 20,000 80,000 March 20,000 74,000 April 26,000 92,000
Magna Corporation has prepared the following sales budget:
Month
Cash Sales
Credit Sales
Jan
$16,000
$68,000
Feb
20,000
80,000
March
20,000
74,000
April
26,000
92,000
May
24,000
76,000
Collections are 30% in the month of sale, 50% in the month following the sale, and 10% two months following the sale. The remaining 10% is expected to be uncollectible.
Required:
make a schedule of cash collections for March through May.
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
