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Question Two [CLO21010 Marks] Towayya Inc. has the following sales budget for 2019: Credit Sales Month Cash Sales $16,000$68,000 20,000 80,000 18,000 174,000 24,000 92,000
Question Two [CLO21010 Marks] Towayya Inc. has the following sales budget for 2019: Credit Sales Month Cash Sales $16,000$68,000 20,000 80,000 18,000 174,000 24,000 92,000 January February March April Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Assume that accounts receivable on January 1st 2019 so. Required: 1. Prepare a schedule of cash collections for the first quarter of 2019 17 Marks]. budget it will be recorded be recorded 2. Compute the ending balance of accounts receivable and indicate in which [2 marks). 3. Compute the amount of bad debts and indicate in which budgeted they will 1 Mark] [Insert answer to Question 2 here]
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