Exercise I (Schedule of Expected Cash Collections) Peak sales for Mideast Products, Inc.., occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July P600,000 August P900,000 September P2,000,000 Total Budgeted sales P2,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P430,000 and June sales totaled P540,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. Assume that the company will prepare a budgeted statement of financial 2.

Exercise I (Schedule of Expected Cash Collections) Peak sales for Mideast Products, Inc.., occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July P600,000 August P900,000 September P2,000,000 Total Budgeted sales P2,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P430,000 and June sales totaled P540,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. Assume that the company will prepare a budgeted statement of financial 2.

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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