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 |
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
