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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Spana Company has the following data: Table 4: Total Monthly Purchasing Budget Month Budgeted Purchases January 220,000 February 185,000 March 240,000 April 155,000 May 180,000 Purchases are paid as follows: ∙ 10% in the month of purchase ∙ 60% one month after purchase ∙ 30% two months after purchase Required: (i) Develop a schedule of cash disbursements for purchases for March, April and May.
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
Purple Merchandising Company purchased a vehicle for TL 80.000 on January 1, 2020. Expected useful life of the vehicle is 10 years and estimated residual value is TL 10.000. Purple company is using Straight Line Depreciation Method for this vehicle. a) What is this vehice's net book value at the end of 4 years? vehicle's net book value at the end of 4 years is bi Journalize depreciation expense of this vehcle at the end of 7th year. Debit account is worth of Credit account is worth of ) Journalize sale transaction when this vehicle is soid for 10.000 TL at the end of B years. Debit account is worth of Debit account is worth of Debit account is worth of Windows'u Etkinleştir Windowsu etkiniestimek ipn Ayartara gidin Credit account is worth of
5
1
X-Tel budgets sales of $55,000 for April, $110,000 for May, and $70,000 for June. Sales are 50% cash and 50% on credit. All credit sales are collected in the month following the sale. Total sales for March were $13,000. Prepare a schedule of cash receipts from sales for April, May, and June Sales Cash receipts from: Total cash receipts X-TEL Schedule of Cash Receipts from Sales April $ $ 55,000 $ 0 $ May 110,000 $ 0 $ June 70,000 0
Spacely Sprockets' sales budget shows the following expected total sales: Month January February March April Sales $31,700 $41,700 $36,700 $31,700 The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 30% In the month of sale and 68% In the month following the sale, with the remainder being uncollectible and written off in the month following the sale. Required: a. Calculate budgeted accounts receivable at the end of each month from February through April. b. Calculate budgeted cash Inflows from collection of receivables for each month from February through April. Note: Round your Intermediate calculations and final answers to the nearest whole dollar amount. a. Budgeted accounts receivable Answer is not complete. b. Budgeted cash inflows from collection of receivables February March April S 17,752 S 23,352 $ 20,552
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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 $45,000 and $65,000, 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 is the expected cash collections from credit sales during the first month? Multiple Choice $13,500 $31,500 $25,500 $49,000

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