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19) The following information pertains to Ortega Corporation: Sales $15,000 17,000 19,000 21,000 24,000 30,000 Month July August September October November December · Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% Purchases $5,000 6,000 7,000 8,000 9,000 10,000 % purchases are paid for in cash in the month of purchase, and the balance is paid following month. Required: a. Prepare a summary of cash collections for the 4th quarter.

19) The following information pertains to Ortega Corporation: Sales $15,000 17,000 19,000 21,000 24,000 30,000 Month July August September October November December · Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% Purchases $5,000 6,000 7,000 8,000 9,000 10,000 % purchases are paid for in cash in the month of purchase, and the balance is paid following month. Required: a. Prepare a summary of cash collections for the 4th quarter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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19) The following information pertains to Ortega Corporation: Sales $15,000 17,000 19,000 21,000 24,000 30,000 Month July August September October November December Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% Purchases $5,000 6,000 7,000 8,000 9,000 10,000 . 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required: a. b. Prepare a summary of cash collections for the 4th quarter. Prepare a summary of cash disbursements for the 4th quarter.
Transcribed Image Text:19) The following information pertains to Ortega Corporation: Sales $15,000 17,000 19,000 21,000 24,000 30,000 Month July August September October November December Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% Purchases $5,000 6,000 7,000 8,000 9,000 10,000 . 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required: a. b. Prepare a summary of cash collections for the 4th quarter. Prepare a summary of cash disbursements for the 4th quarter.
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