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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Qw.53.
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education