x III McGraw-Hill C X 5 Question 1 - W X Question 1 - W X Mail - Kaur, Jas X M G - jasdeeshjas X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh.. bookmarks Mail - Kaur, Jasdees... https://console.pea... Prime Video O DHG 10 Inc.: 00176... 9 My Account - guar... SGT @ law Assignment: Cash Budget i Saved Help Save & Exit Suk Cash $ 37, 500 (dr) Accounts receivable. 126,000 (dr) Allowance for doubtful accounts 2 , 800 ( cr ) Merchandise inventory 26, 250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations ped is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and $2,000 of bad debt expense. g. In the event of a shortfall, the company borrows money. In contrast, in the event of excess cash, the company invests in short-term investments. Borrowings and investments are assumed to be made at the end of a month in increments of $6,250. h. Interest on borrowings is 10% per year, payable every quarter, on the accumulated amount of the loan; similarly, interest earned on investments is 8% per year on the accumulated investments and is received every quarter. Investments can be matured and the principal amount redeemed in June or December of a year. Prev 1 of 1 Next > aw 12 C Mostly cloudy ( x 0 04 here to search