35 It is November 1 of Year 1. Sales for a furniture company for November, December, and January (of Year 2) are forecasted to be as follows: • November: $200,000 • December: $600,000 ⚫ January: $100,000 Σ 70% of sales are credit sales; the remaining sales are cash sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, 65% in the second following month, and 5% are never collected. Total sales (cash and credit): • September, Year 1: $200,000 October, Year 1: $300,000 What is the forecasted amount of total cash collections in January?

35 It is November 1 of Year 1. Sales for a furniture company for November, December, and January (of Year 2) are forecasted to be as follows: • November: $200,000 • December: $600,000 ⚫ January: $100,000 Σ 70% of sales are credit sales; the remaining sales are cash sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, 65% in the second following month, and 5% are never collected. Total sales (cash and credit): • September, Year 1: $200,000 October, Year 1: $300,000 What is the forecasted amount of total cash collections in January?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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