Exercise D5-21 In the coming year, Swifty, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $19 to retailers throughout the country. All sales will be made on account. An expected 73% of sales will be collected within the quarter of the sale, and another 22 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: Budgeted sales units. Prepare Swifty, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price Budgeted sales revenue 1st quarter sales 2nd quarter sales 3rd quarter sales 4th quarter sales Totals $ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 25,600 44,700 52,000 83,700 Cash Receipts Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts $ $ Net Accounts Receivable $1 $ Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year.

Exercise D5-21 In the coming year, Swifty, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $19 to retailers throughout the country. All sales will be made on account. An expected 73% of sales will be collected within the quarter of the sale, and another 22 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: Budgeted sales units. Prepare Swifty, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price Budgeted sales revenue 1st quarter sales 2nd quarter sales 3rd quarter sales 4th quarter sales Totals $ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 25,600 44,700 52,000 83,700 Cash Receipts Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts $ $ Net Accounts Receivable $1 $ Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year.

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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In the coming year, Concord, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive- motion injuries. The brace will be sold for $13.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 29,000 41,000 57,000 77,000 Prepare Concord, Inc's cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, eg. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)
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