Question
Pharoah Company has budgeted monthly sales revenue for the first 6 months of 2022 as follows: Budgeted Sales Revenues January $63,000 February 76,000 March 82,000
Pharoah Company has budgeted monthly sales revenue for the first 6 months of 2022 as follows:
Budgeted Sales Revenues | ||||
---|---|---|---|---|
January | $63,000 | |||
February | 76,000 | |||
March | 82,000 | |||
April | 76,000 | |||
May | 63,000 | |||
June | 16,000 |
Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June 2022. (Do not leave any answer field blank. Enter 0 for amounts.)
PHAROAH COMPANY Expected Cash Receipts from Sales For the Months of April, May and June 2022 | |||||||
---|---|---|---|---|---|---|---|
Collection of sales | April | May | June | ||||
Collection of February sales | |||||||
Credit Sales | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Cash Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Collection of March sales | |||||||
Credit Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Cash Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Collection of April sales | |||||||
Credit Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Cash Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Collection of May sales | |||||||
Credit Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Cash Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Collection of June sales | |||||||
Credit Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Cash Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Total cash receipts | $enter a total amount for this column | $enter a total amount for this column | $enter a total amount for this column |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started