Question
Search Engine Corp. has provided the following details concerning budgeted sales. Budgeted Sales Jan $75,000 Feb 69,000 March 80,000 April 82,000 May 80,500 June 92,000
Search Engine Corp. has provided the following details concerning budgeted sales.
Budgeted Sales
| Jan | $75,000 |
| Feb | 69,000 |
| March | 80,000 |
| April | 82,000 |
| May | 80,500 |
| June | 92,000 |
The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.
Jan Feb March April May June
Budgeted sales
Cash Receipts from
customers:
Total collection from
customers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
