Question
The Handel Company has obtained the following sales forecast data: July August September October Cash sales ..... $ 80,000 $ 70,000 $ 50,000 $ 60,000
The Handel Company has obtained the following sales forecast data:
July August September October
Cash sales ..... $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit sales ... $260,000 $220,000 $200,000 $220,000
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder (10%) in the second month following the month of sale. There are no bad debts.
The budgeted accounts receivable balance on September 30 is:
a. | $196,000 | |
b. | $182,000 | |
c. | $148,000 | |
d. | $126,000 |
The budgeted cash receipts for October are:
a. | $206,000 | |
b. | $220,000 | |
c. | $266,000 | |
d. | $280,000 |
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