Question
Spencer Company has budgeted sales for the upcoming months as follows: February $ 609,000 March $ 617,000 April $ 650,000 May $ 673,000 80% of
| Spencer Company has budgeted sales for the upcoming months as follows: |
| February | $ | 609,000 |
| March | $ | 617,000 |
| April | $ | 650,000 |
| May | $ | 673,000 |
| 80% of the sales are credit sales, the remainder are cash sales. Credit sales are collected 45% in the month of sale, 45% in the month following the sale, and 10% in the second month following the sale. |
| a. | Compute Spencers cash receipts for April. (Do not round intermediate calculations.) |
| b. | Compute Spencers cash receipts for May. (Do not round intermediate calculations.) |
| c. | Compute the accounts receivable balance for May 31. (Do not round intermediate calculations.) |
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Organizational Auditing And Assurance In The Digital Age
Authors: Rui Pedro Marques, Carlos Santos, Helena Inácio
1st Edition
1522573569, 978-1522573562
