Question
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $90,000 $190,000 February $95,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |
|---|---|---|
| January | $90,000 | $190,000 |
| February | $95,000 | $210,000 |
| March | $47,000 | $170,000 |
| April | $42,000 | $127,000 |
| May | $52,000 | $240,000 |
| June | $120,000 | $210,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
50% in month of sale
25% in month following sale
25% in second month following sale
The accounts receivable balance on January 1 of the current year was $73,000, of which $46,000 represents uncollected December sales and $27,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
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
Financial Accounting
Authors: Jill Collis
1st Edition
1137335882, 978-1137335883
