Compton Company expects the following total sales:MonthSalesMarch$ 29,000April$ 19,00059MayJunees$ 25,000$ 24,000The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balanceon May 31 is:Multiple Choice$22,320.$18,750.О$11,725.$10,500.

To compute the budgeted account receivable balance on May 31: Account Receivable = Sales in May x %…

Answered: Compton Company expects the following…

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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A company's budgeted sales and cash collections for Quarter 1 are listed below: January February March Cash Sales $93,000 $100,000 $85,000 Collections on credit sales are as follows: Month of sale A month after sale Second month after sale $1,278,000 $335,000 $428,000 $126,500 Credit Sales Answer. (Click to select) www.m (Click to select) None of the answers are correct. ? $260,000 $195,000 v Total Sales The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales astur um al Q. If the total cash collected in March was $320,000, then total January sales must have been: $360,000 $280,000 50% 40% 10%
Sheridan, Inc. expects sales volume totaling $460000 for June. Data for the month follows: Sales commissions Sales manager's salary 4% of sales $27600 per month $23000 per month Advertising expense Shipping expense. Miscellaneous selling expenses $1932 per month plus 3/4% of sales O $78982. O $52532. O $28382. O $77050. 1% of sales How much is Sheridan's selling expense budget for June?
ABC company has budgeted $100,000 of sales for January. Sales are 80% cash and 20% on credit Credit sales are collected 100% in the month following the sale A/R at Dec 31 = $15,000 What were the December credit sales? Select one: $15,000 $0 none of the answers is correct $100,000
Browning Company's sales budget shows the following expected total sales: Month Sales $23,000 $27,000 $32,000 $43,000 January February March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $22,575 $25,005. $35,881 $23,200
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $40,000 and $61,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale and the remaining 70% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month? Multiple Choice $42,700 $18,300 О $46,300 C $30,300
Center Company makes collections on sales according to the following schedule: 40% in the month of sale 50% in the month following sale 7% in the second month following sale The following sales are expected: Expected Sales January $ 106,000 February $ 142,000 March $ 125,000 Cash collections in March should be budgeted to be: $126,330. $128,420. $121,000. $125,000.
Pacific Place has developed the following sales forecast for the following months. Month Sales May $500,000 June $650,000 July $380,000 August $300,000 The collection policy for customers is: 40 percent in the month of sale 60 percent in the following month after sale How much is the expected total cash collections from customers in June? Multiple Choice $610,000 $260,000 $590,000 $560,000 $300,000
19. SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: June July August $200,000 120,000 150,000 How much is total cash collected during August? A) $145,920 B) $105,120 C) $88,800 D) $144,000
C2
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in second month following sale The following sales have been budgeted: Sales April $220, 000 $150,000 May June $140, 000 Budgeted cash collections in June would be: Multiple Cholce $140,000 $142,500 $146,900 $140,440
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $110,000 $120,000 $110,000 Budgeted cash collections in June would be: Multiple Choice $115,500 $110,000 $110,550 $112,000
Vaibhav

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