Question
Quillin Company had the following budgeted information for October: October 1 cash balance $3,500 Expected sales 2,500 units at $25 each (half in cash, remainder
Quillin Company had the following budgeted information for October:
October 1 cash balance $3,500
Expected sales 2,500 units at $25 each (half in cash, remainder on credit due in November)
Inventory purchases 3,000 units at $14 each (all in cash)
Rent $1,450
Payroll $1,000
Utilities and other costs $4,500
Accounts receivable balance Oct. 1, $35,000 (includes $700 bad debts allowance)
A. What is the budgeted collection on accounts receivable for October? $
B. What are the total cash disbursements for October? $
C. What is the ending cash balance for October? $
D. Assuming sales are collected 75 percent in the month of sale and 25% the following month, what is the ending cash balance for October? $
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