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The Grainger Company's Budgeted Income Statement reflect the following amounts: Sales Purchases Expenses January February $ 120,000 $ 78,000 $ 24,000 110,000 66,000 24,200 March
The Grainger Company's Budgeted Income Statement reflect the following amounts: Sales Purchases Expenses January February $ 120,000 $ 78,000 $ 24,000 110,000 66,000 24,200 March 125,000 81,250 27,000 April 130,000 84,500 28,600 Sales are collected 50% in the month of sale, 30% in the month following sale, 19% in the second month following sale, and 1% is uncollectible. The uncollectible accounts are expensed at the end of the year. Grainger pays for purchases by the fifth of the month following purchase, to take advantage of the 3% discount allowed. On January 1, Grainger had a cash balance of $88,000 and an Accounts Receivable balance of $58,000; $35,000 on account will be collected in January with the remaining balance to be collected in February. Grainger had an Accounts Payable balance of $72,000 on January 1. Invoices are recorded at their gross amount. The monthly expense figures include $5,000 in monthly depreciation. The expenses are paid for in the month incurred. 20) 21) Grainger's budgeted cash receipts in February are calculated to be: A. "B. C. PUDE D. $ 95,000. $ 91,000. $113,640. $113,090. $ 114,000. Grainger's budgeted cash payments in February are calculated to be: A. $ 75,660
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