July August Budgeted sales (all on account) $ 150,000 $ 200,000 September Total $ 300,000 $ 650,000 Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and $250,000, respectively. The company is not expecting any bad debts. Required: a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months. Schedule of Expected Cash Collections July August September Total May sales $ ° June sales July sales 0 0 August sales 0 September sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0 b. Compute the accounts receivable balance as of September 30. August sales September sales Total accounts receivable at June 30 $ 0
July August Budgeted sales (all on account) $ 150,000 $ 200,000 September Total $ 300,000 $ 650,000 Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and $250,000, respectively. The company is not expecting any bad debts. Required: a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months. Schedule of Expected Cash Collections July August September Total May sales $ ° June sales July sales 0 0 August sales 0 September sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0 b. Compute the accounts receivable balance as of September 30. August sales September sales Total accounts receivable at June 30 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need the answer quickly
![July
August
Budgeted sales (all on account)
$ 150,000
$ 200,000
September
Total
$ 300,000 $ 650,000
Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the
month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and
$250,000, respectively. The company is not expecting any bad debts.
Required:
a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months.
Schedule of Expected Cash Collections
July
August
September
Total
May sales
$
°
June sales
July sales
0
0
August sales
0
September sales
0
Total cash collections
$
0
$
0
$
0
$
0
b. Compute the accounts receivable balance as of September 30.
August sales
September sales
Total accounts receivable at June 30
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c6eadda-12f9-4680-b946-7f3ad22dd7c8%2F4cac2a8d-8581-4522-a042-b921651d19dd%2Fa8u4ip_processed.png&w=3840&q=75)
Transcribed Image Text:July
August
Budgeted sales (all on account)
$ 150,000
$ 200,000
September
Total
$ 300,000 $ 650,000
Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the
month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and
$250,000, respectively. The company is not expecting any bad debts.
Required:
a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months.
Schedule of Expected Cash Collections
July
August
September
Total
May sales
$
°
June sales
July sales
0
0
August sales
0
September sales
0
Total cash collections
$
0
$
0
$
0
$
0
b. Compute the accounts receivable balance as of September 30.
August sales
September sales
Total accounts receivable at June 30
$
0
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