Benton Company's sales budget shows the following expected total sales: Month Sales $18,000 $37,000 $42,000 $47,000 January February March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 67% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be:

Benton Company's sales budget shows the following expected total sales: Month Sales $18,000 $37,000 $42,000 $47,000 January February March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 67% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
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