Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $670,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 27 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,800 and is budgeted to be $73,400 as of January 31. Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January. Expected cash collection

Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $670,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 27 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,800 and is budgeted to be $73,400 as of January 31. Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January. Expected cash collection

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hunt Company's sales, based on past experience, are 30% cash and 70% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $69,000, of which $24,000 is from November sales. Total sales for January and February are budgeted to be $110,000 and $130,000, respectively. What are Hunt Company's budgeted cash receipts for January? Multiple Choice $79,500. $92,500. $95,800. $112,500. $125,300.
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Woodpecker Co. has $300,000 in accounts receivable on January 1. Budgeted sales for January are $964,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a.$642,720 b.$1,071,200 c.$1,371,200 d.$856,960
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The Hubbard Corporation is a distributor of hair care products and is ready to start the third quarter, in which its peak sales occur. The company has requested a $100,000, 90-day loan from its bank to help them meet their cash requirements for the third quarter. Since Hubbard Corporation has experienced difficulty in paying off their loans in previous years, the loan officer has requested the company prepare a cash budget for the third quarter. The following data has been gathered by the staff. On July 1, 2021, the beginning of the third quarter, the company will have a cash balance of $75,000. Actual sales for the last 2 months and budgeted sales for the third quarter (all sales are on account). Month Amount in Dollars ($) May (actual) 500,000 June (actual) 480,000 July (budgeted) 520,000 August (budgeted) 550,000 September (budgeted) 600,000 Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month…
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Gibson is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances. Salary expense Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total S&A expenses before interest Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Complete this question by entering your answers in the tabs below. Req A Req B and C July $18,300 August September $18,300 $18,300 2,800 2,800 2,800 290 320 350 2,500 2,500 2,500 2,700 2,700 2,700 5,700 5,700 5,700 790 790 790 $33,080 $33,110 $33, 140…
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