Question
Sunny Corporation expects to have the following sales over the next three months: July August September Sales in dollars $220,000 $300,000 $380,000 20% of the
Sunny Corporation expects to have the following sales over the next three months:
| July | August | September | |
| Sales in dollars | $220,000 | $300,000 | $380,000 |
20% of the sales are for cash. Of the remaining credit sales, 30% are collected in the same month as the sale, and 70% are collected the month following the sale. The balance of accounts receivable on July 1 was $135,000, which represented the uncollected balance of June sales. Complete the blanks in the first schedule to split sales between cash sales and credit sales. Then, complete the schedule of cash receipts. If a blank has an amount of $0, you are required to enter 0.
Do not use commas, or dollar signs in your answer. Round answers to the nearest whole dollar, if necessary.
Schedule to split sales between cash sales and credit sales
| July | August | September | |
| Cash sales | |||
| Credit sales | |||
| Total sales |
Schedule of Cash Receipts
| July | August | September | |
| Cash sales (from schedule above) | |||
| June credit sales | |||
| July credit sales | |||
| August credit sales | |||
| September credit sales | |||
| Total cash receipts |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
