The PDQ Company makes collections on credit sales according to the following schedule: 10% in month of sale 85% in month following sale 5% uncollectible The following sales have been budgeted: Sales $100,000 $120,000 $110,000 Month April............ May. June Cash collections in May would be: Numeric Response

The PDQ Company makes collections on credit sales according to the following schedule: 10% in month of sale 85% in month following sale 5% uncollectible The following sales have been budgeted: Sales $100,000 $120,000 $110,000 Month April............ May. June Cash collections in May would be: Numeric Response

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett Inc. found that about 15% of its sales during the month were forcash. Bennett has the following accounts receivable collectionexperience: Percent collected in the month of sale Percent collected in the month after the sale Percent collected in the second month after the sale 25 68 5 Bennett's anticipated sales for the next few months are as follows: AprilMayJuneJulyAugust $250,000290,000280,000295,000300,000 (Note: Round all amounts to the nearest dollar.) Required:1. Calculate credit sales for May, June, July, and August.2. Prepare a schedule of cash receipts for July and August.
Julia's Candy Co. reports the following information from its sales account and sales budget: Sales Expected Sales: O $30,000 O $82,500 O $112,500 O $120,000 May June July O $202,500 August September Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. Based on the information from Julia's, the total amount of cash expected to be received from customers in September is: -O+ 14 B % F6 D $105,000 93,000 F7 $90,000 6 110,000 120,000 F8 & F9
Rivers Company purchases merchandise on account. In general, Rivers pays 50 percent in the month of purchase and 50 percent in the following month. All payments in the month of purchase qualify for a 2 percent cash discount. First quarter budgeted purchases are: January February March $90,000 80,000 96,000 A. What are the total cash disbursements expected in February? $ B. What are the total cash disbursements expected in March? C. Now suppose that there is no cash discount for purchases made in the month of purchase. What are the total cash disbursements expected in February and in March? February cash disbursements March cash disbursements
Rivers Company purchases merchandise on account. In general, Rivers pays 50% in the month of purchase and 50% in the following month. All payments in the month of purchase qualify for a 2% cash discount. First quarter budgeted purchases are: January $90,000 February $80,000 March $96,000 A. What are the total cash disbursements expected in February? B. What are the total cash disbursements expected in March? C. Now suppose that there is no cash discount for purchases made in the month of purchase. Now what are the total cash disbursements expected in February? In March?
Jake Company needs to calculate the amount of cash it expects to collect for themonth of july using the following info: Month Credit SaIesMay　　　　200,000　budgetedJune　　　　230,000 budgetedJuIy　　　　 220,000　budgetedAugust　　　250,000　budgetedThe company has historically collected its receivables as follows:Collections in month of sale 30%Collections one month after the sale 50%ColIections two months after the sale 20%
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customer while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remainim 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December $109,000 136,000 199,000 The Accounts Receivable balance on September 30 was $73,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dolla OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 November Receipts from cash sales: Cash sales September sales on account: Collected in October October sales on account: Collected in October Collected in November November sales on account: October…
A company has the following collection pattern: month of sale, 30%; month following sale, 70%. If credit sales for January and February are $100,000 and $200,000, respectively, the cash collections for February are: Group of answer choices
The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Month April May June Sales $100,000 120,000 110,000 The budget for cash collections in June will be:
The management of Palind Ltd decide to prepare a Cash Budget for November and December. The following information is available: Sales: Cash Credit Purchases Salaries & Wages Sundry Expenses WY Actual August September October R 194 500 287 300 510 000 72 600 17 800 R 235 700 350 000 490 000 72 600 18 400 R 275 000 410 000 495 000 72 600 22 000 Additional information: 1. Cash in respect of credit sales is collected as follows: • 50% within 30 days • 30% within 60 days • 15% within 90 days • The balance is written off as irrecoverable. 2. The following discounts are allowed on sales: Budgeted 7. The cash in the bank on 31 October was R44 500. November December R 250 500 400 400 520 000 72 600 22 600 R 368 000 697 000 680 000 72 600 25 700 • 10% on cash sales • 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. 5. Seventy-five (75%) of all purchases are on…
Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in January; $10100 in February and $10400 in March. the company expects 60% of the sales to be cash and the remainder on accounts. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Account Receivable account has a zero on January. 1. Prepare a schedule of cash receipts for Marlin for January, February and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 20% in the following month of the sale and 10% in the second month of the sale. What is the balance in Accounts Receivable on March 31?