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Whole Lotta Hometowns, LLC sells game day apparel for local sports teams. The company generated sales on account of $34,000 during November, which accounted for
Whole Lotta Hometowns, LLC sells game day apparel for local sports teams. The company generated sales on account of $34,000 during November, which accounted for 80% of its total sales revenue during the month. The following sales revenue budget was prepared for December and January: December... total budgeted sales revenue = $30,000 January... total budgeted sales revenue = $39,000 10% of the total budgeted sales revenue are for cash; the remaining sales are made on account. Sales made on account are collected as follows: 70% of the sales on account are collected in the month following the month of sale and 29% of the sales on account are collected in the second month following the month of sale. The balance is expected to be uncollectible. Given the above information, calculate the total expected cash receipts in January.
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