Hagen Company’s budgeted sales and direct materials purchase are as follows.   Budgeted Sales Budgeted D.M. Purchases January $300000 $60000 February 330000 70000 March 350000 80000   Hagen’s sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Hagen’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchases, and 60% in the month following purchases.   Prepare a schedule of expected collections from customers for March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hagen Company’s budgeted sales and direct materials purchase are as follows.

 

Budgeted Sales

Budgeted D.M. Purchases

January

$300000

$60000

February

330000

70000

March

350000

80000

 

Hagen’s sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Hagen’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchases, and 60% in the month following purchases.

 

Prepare a schedule of expected collections from customers for March.

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