Budgeted Cash Collections The Smile Doctor offers terms of 3/10, n/30, with a 10% discount on patient payments made with cash. The Smile Doctor estimates its total billings for the first calendar quarter of the year as follows: January, $125,000; February, $110,000; and March, $130,000. Historically, the Smile Doctor has had the following patient collection patterns: In month of sale: Cash at time of sale On account during the discount period On account after the discount period. In month following sale: On account after the discount period In second month following sale: On account after discount period Average portion uncollectible $ Check Portions of Total Sales 15% 5% 100% What would the Smile Doctor's budgeted total cash collections be for March? x 25% 15% 10% 30%
Budgeted Cash Collections The Smile Doctor offers terms of 3/10, n/30, with a 10% discount on patient payments made with cash. The Smile Doctor estimates its total billings for the first calendar quarter of the year as follows: January, $125,000; February, $110,000; and March, $130,000. Historically, the Smile Doctor has had the following patient collection patterns: In month of sale: Cash at time of sale On account during the discount period On account after the discount period. In month following sale: On account after the discount period In second month following sale: On account after discount period Average portion uncollectible $ Check Portions of Total Sales 15% 5% 100% What would the Smile Doctor's budgeted total cash collections be for March? x 25% 15% 10% 30%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
gop.9
Transcribed Image Text:Budgeted Cash Collections
The Smile Doctor offers terms of 3/10, n/30, with a 10% discount on patient payments made with cash. The Smile Doctor estimates its total billings for the first calendar quarter of
the year as follows: January, $125,000; February, $110,000; and March, $130,000. Historically, the Smile Doctor has had the following patient collection patterns:
In month of sale:
Cash at time of sale
On account during the discount period
On account after the discount period
In month following sale:
On account after the discount period
In second month following sale:
On account after discount period
Average portion uncollectible
$
Portions
of
Total
Sales
Check
25%
15%
10%
30%
What would the Smile Doctor's budgeted total cash collections be for March?
15%
5%
100%
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
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