Question
Peaches & Cream Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of
Peaches & Cream Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data:
| January | February | March | April | |
| Total Sales | $60,000 | $75,000 | $52,000 | $38,000 |
What would be the budgeted total cash receipts in April?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the budgeted total cash receipts in April we need to consider the portion of sales that ...
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Cost Accounting
Authors: William K. Carter
14th edition
759338094, 978-0759338098
