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
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education