#240,000; and June, $360,000. An analysis of oper Portion of Total Sales In month of sale: Cash at time of sale On account, during discount period On account, after discount period In month following sale: On account, during discount period On account, after discount period In second month following sale: On account, after discount period Average portion uncollectible 30% 15% 10% 15% 10% 15% 5% 100%
#240,000; and June, $360,000. An analysis of oper Portion of Total Sales In month of sale: Cash at time of sale On account, during discount period On account, after discount period In month following sale: On account, during discount period On account, after discount period In second month following sale: On account, after discount period Average portion uncollectible 30% 15% 10% 15% 10% 15% 5% 100%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Whitney's, Inc., sells on terms of 5% discount for "cash and carry" or 2/10, n/30 and estimates its total sales for the second calendar quarter of next year as follows: April, $300,000; May,
$240,000; and June, $360,000. An analysis of operations indicates the following customer collection patterns:
In month of sale:
Cash at time of sale
On account, during discount period
On account, after discount period:
In month following sale:
On account, during discount period
On account, after discount period
In second month following sale:
On account, after discount period
Average portion uncollectible
On account, no discount
May Sales
On account, no discount
On account, with discount
Prepare an estimate of the cash to be collected from customers during June.
Estimated Collections from Customers in June
April Sales
June sales
Portion
of
Total
Sales
On account, no discount
30%
15%
10%
$
15%
10%
15%
5%
100%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be9518c-51b7-4bb1-8036-854b6000ee8b%2F19c7474f-ba9a-425b-a248-e4f4fa32cfab%2F538n0p9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Whitney's, Inc., sells on terms of 5% discount for "cash and carry" or 2/10, n/30 and estimates its total sales for the second calendar quarter of next year as follows: April, $300,000; May,
$240,000; and June, $360,000. An analysis of operations indicates the following customer collection patterns:
In month of sale:
Cash at time of sale
On account, during discount period
On account, after discount period:
In month following sale:
On account, during discount period
On account, after discount period
In second month following sale:
On account, after discount period
Average portion uncollectible
On account, no discount
May Sales
On account, no discount
On account, with discount
Prepare an estimate of the cash to be collected from customers during June.
Estimated Collections from Customers in June
April Sales
June sales
Portion
of
Total
Sales
On account, no discount
30%
15%
10%
$
15%
10%
15%
5%
100%
![In month of sale:
Cash at time of sale
On account, during discount period
On account, after discount period
In month following sale:
On account, during discount period.
On account, after discount period
In second month following sale:
On account, after discount period
Average portion uncollectible
On account, no discount
May Sales
Prepare an estimate of the cash to be collected from customers during June.
Estimated Collections from Customers in June
April Sales
On account, no discount
On account, with discount
June sales
On account, no discount
On account, with discount
Cash
Total estimated june collections
$
30%
15%
10%
5
15%
10%
15%
5%
100%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be9518c-51b7-4bb1-8036-854b6000ee8b%2F19c7474f-ba9a-425b-a248-e4f4fa32cfab%2Fwr52ysc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In month of sale:
Cash at time of sale
On account, during discount period
On account, after discount period
In month following sale:
On account, during discount period.
On account, after discount period
In second month following sale:
On account, after discount period
Average portion uncollectible
On account, no discount
May Sales
Prepare an estimate of the cash to be collected from customers during June.
Estimated Collections from Customers in June
April Sales
On account, no discount
On account, with discount
June sales
On account, no discount
On account, with discount
Cash
Total estimated june collections
$
30%
15%
10%
5
15%
10%
15%
5%
100%
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