Question
Please answer all three parts. Thank you. Note: Not all sales are always collected. Remember Bad Debt Expense. So dont worry if the problems do
Please answer all three parts. Thank you.
Note: Not all sales are always collected. Remember Bad Debt Expense. So dont worry if the problems do not add up to 100%.
- ABC Company has the following sales budget for the last six months of 2020:
July $9,000
August $8,000
September $11,000
October $9,000
Historically, the cash collection of sales has been as follows:
35% of sales collected in the month of sale,
45% of sales collected in the month following the sale,
20% of sales collected in the second month following the sale.
What are expected cash collections for September? For October?
- Jason Ds sales for the next five months are as follows:
February $175,000
March $160,000
April $145,000
May $135,000
June $130,000
Collection history for the company indicates that 50% of sales are collected in the month of the sale, 38% is collected in the following month, and 12% of sales are uncollectible.
How much are total budgeted cash receipts for April? For May? For June?
- XYZs budgeted sales for the next three months are as follows:
February $130,000
March $170,000
April $200,000
Collection history for the company indicates that 60% of sales are collected in the month of the sale, 36% is collected in the following month, and 4% of sales are uncollectible. How much are budgeted cash receipts for April?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
