J.TOY Inc., was organized on August 1 of the current year. Projected sales for the next three months are as follows: -August : $120,000 -September : $200,000 -October : $230,000 The J.TOY expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating total cash collections for August, September, and October.

J.TOY Inc., was organized on August 1 of the current year. Projected sales for the next three months are as follows: -August : $120,000 -September : $200,000 -October : $230,000 The J.TOY expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating total cash collections for August, September, and October.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EA: Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale,...

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Trapp Co. was organized on August 1 of the current year.  Projected sales for the first three months are:  August - $100,000; September - $185,000; October - $225,000.  The company expects to sell 40% of its merchandise for cash. Of the sales on account, one-third is expected to be collected in the month of the sale and the remainder in the following month. 1.)What would be the amount collected from accounts receivable in the month of August from the August sales on account (credit sales for August x .333)? 2.)What would be the amount collected from accounts receivable in the month of September from the September sales on account (credit sales for September x .333)? 3.)What would be the total amount collected from accounts receivable in the month of September [(credit sales for September x .333) + (credit sales for August x .667)]?
Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August sales           100,000 September sales           185,000 October sales           225,000 The company expects to sell 40% of its merchandise for cash. Of the sales on account (credit sales), 33% are to be collected in the month of sale 50% are to be collected in the month after the sale 17% are to be collected two months after the sale Required: Prepare a schedule indicating cash collections for August, September, and October. Trapp Co.                             Schedule of Cash Collections August September October August…
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