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Tableware Unlimited Company plans to sell china and other dining - related items over the internet. The company plans to begin business on January 1
Tableware Unlimited Company plans to sell china and other diningrelated items over the internet. The company plans to begin business on January Year The company's accountant has prepared the following sales budget for the first quarter of Year : January February March First Quarter Budgeted Sales $ $ $ $ In anticipation of preparing a cash budget, the accountant needs to compute the expected monthly cash collections. Because the company is new and has no collection experience of its own, the accountant contacted an industry trade group and obtained the following industry collection data: Collections on account: in the month of sale in the month following sale in the second month following sale Uncollectible accounts have averaged of receivables. The company gives a discount for payments made by customers during the month of sale. Required: Prepare a schedule of cash collections from sales by month and in total for the first quarter.
Tableware Unlimited Company plans to sell china and other diningrelated items over the internet. The company plans to begin business on January Year The company's accountant has prepared the following sales budget for the first quarter of Year :
January February March First Quarter
Budgeted Sales $ $ $ $
In anticipation of preparing a cash budget, the accountant needs to compute the expected monthly cash collections. Because the company is new and has no collection experience of its own, the accountant contacted an industry trade group and obtained the following industry collection data:
Collections on account:
in the month of sale
in the month following sale
in the second month following sale
Uncollectible accounts have averaged of receivables. The company gives a discount for payments made by customers during the month of sale.
Required:
Prepare a schedule of cash collections from sales by month and in total for the first quarter.
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