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Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. $ 43,000 June 49,000 July 38,000 August $ 47,000 57,000 March April Sales in January and February were $46,000 and $45.000 respectively Experience has shown that 10 percent of total sales are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August sales Collections of current sales January 46000 S February Ed's katerbeds Cash Receipts Schedule March 45000 43000 April S 49000

Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. $ 43,000 June 49,000 July 38,000 August $ 47,000 57,000 March April Sales in January and February were $46,000 and $45.000 respectively Experience has shown that 10 percent of total sales are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August sales Collections of current sales January 46000 S February Ed's katerbeds Cash Receipts Schedule March 45000 43000 April S 49000

FINANCIAL ACCOUNTING
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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Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 43,008 June 49,000 July 38,000 August $ 47,000 55,000 57,000 Sales in January and February were $46,000 and $45,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale a. Prepare a monthly cash receipts schedule for the firm for March through August Sales Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts January $ 46000 Ed's Waterbeds Cash Receipts Schedule March February $ 45000 $ 43000 April S 49000
Transcribed Image Text:Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 43,008 June 49,000 July 38,000 August $ 47,000 55,000 57,000 Sales in January and February were $46,000 and $45,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale a. Prepare a monthly cash receipts schedule for the firm for March through August Sales Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts January $ 46000 Ed's Waterbeds Cash Receipts Schedule March February $ 45000 $ 43000 April S 49000
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