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All sales of Tess's Jeans and Uniforms (TJU) are made on credit Sales are billed twice monthly, on the fifth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. For accounts paid within the first 10 days after the billing date. TJU gives customers a 3% discount otherwise the full amount is due within 30 days of the billing date, and customers that do not pay within the 10-day discount period generally wait the full 30 days before making payment. Based on past experience, the collection experience of accounts receivable is (Click the icon to view the collection experience) (Click the icon to view the sales budget) TJU's average markup on its products is 30% of the sales price. TJU purchases merchandise for resale to meet the current month's sales demand and to maintain a desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit TJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month Read the requirements Requirement 1. How much cash can TJU plan to collect from accounts receivable collections during July 20x8? July collections May sales billed June 5 June sales billed June 20 June sales billed July 5 Total July collections ▾ Data table Within the 10 day discount period At 30 days after billing Uncollectible Print Done 75% 23% 2% Data table Sales for May 2008 were $760,000. The forecast sales for the next 4 months are June July August September Print Done $ 780,000 1,000,000 900,000 620,000

All sales of Tess's Jeans and Uniforms (TJU) are made on credit Sales are billed twice monthly, on the fifth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. For accounts paid within the first 10 days after the billing date. TJU gives customers a 3% discount otherwise the full amount is due within 30 days of the billing date, and customers that do not pay within the 10-day discount period generally wait the full 30 days before making payment. Based on past experience, the collection experience of accounts receivable is (Click the icon to view the collection experience) (Click the icon to view the sales budget) TJU's average markup on its products is 30% of the sales price. TJU purchases merchandise for resale to meet the current month's sales demand and to maintain a desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit TJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month Read the requirements Requirement 1. How much cash can TJU plan to collect from accounts receivable collections during July 20x8? July collections May sales billed June 5 June sales billed June 20 June sales billed July 5 Total July collections ▾ Data table Within the 10 day discount period At 30 days after billing Uncollectible Print Done 75% 23% 2% Data table Sales for May 2008 were $760,000. The forecast sales for the next 4 months are June July August September Print Done $ 780,000 1,000,000 900,000 620,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...
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All sales of Tess's Jeans and Uniforms (TJU) are made on credit. Sales are billed twice monthly, on the fifth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. For accounts paid within the first 10 days after the billing date, TJU gives customers a 3% discount; otherwise the full amount is due within 30 days of the billing date, and customers that do not pay within the 10-day discount period generally wait the full 30 days before making payment. Based on past experience, the collection experience of accounts receivable is: (Click the icon to view the collection experience.) (Click the icon to view the sales budget.) TJU's average markup on its products is 30% of the sales price. TJU purchases merchandise for resale to meet the current month's sales demand and to maintain a desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit. TJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month. Read the requirements. Requirement 1. How much cash can TJU plan to collect from accounts receivable collections during July 20X8? July collections May sales billed June 5 June sales billed June 20 June sales billed July 5 Total July collections Data table Within the 10 day discount period At 30 days after billing Uncollectible Print Done 75 % 23 % 2% X Data table Sales for May 20X8 were $760,000. The forecast sales for the next 4 months are June July August September Print Done $ 780,000 1,000,000 900,000 620,000
Transcribed Image Text:All sales of Tess's Jeans and Uniforms (TJU) are made on credit. Sales are billed twice monthly, on the fifth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. For accounts paid within the first 10 days after the billing date, TJU gives customers a 3% discount; otherwise the full amount is due within 30 days of the billing date, and customers that do not pay within the 10-day discount period generally wait the full 30 days before making payment. Based on past experience, the collection experience of accounts receivable is: (Click the icon to view the collection experience.) (Click the icon to view the sales budget.) TJU's average markup on its products is 30% of the sales price. TJU purchases merchandise for resale to meet the current month's sales demand and to maintain a desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit. TJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month. Read the requirements. Requirement 1. How much cash can TJU plan to collect from accounts receivable collections during July 20X8? July collections May sales billed June 5 June sales billed June 20 June sales billed July 5 Total July collections Data table Within the 10 day discount period At 30 days after billing Uncollectible Print Done 75 % 23 % 2% X Data table Sales for May 20X8 were $760,000. The forecast sales for the next 4 months are June July August September Print Done $ 780,000 1,000,000 900,000 620,000
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