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Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Schedule of Cash Collections Total collections 1 2 Quarters 3 4

Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Schedule of Cash Collections Total collections 1 2 Quarters 3 4

FINANCIAL ACCOUNTING
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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Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Schedule of Cash Collections Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Total collections 1 2 Quarters 3 4
Transcribed Image Text:Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Schedule of Cash Collections Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Total collections 1 2 Quarters 3 4
Data table Accounts receivable (January 1, 2020) Budgeted sales in Quarter 1 (January 1 to March 31, 2020) Budgeted sales in Quarter 2 (April 1 to June 30, 2020) Budgeted sales in Quarter 3 (July 1 to September 30, 2020) Budgeted sales in Quarter 4 (October 1 to December 31, 2020) 47,000 230,000 240,000 190,000 250,000
Transcribed Image Text:Data table Accounts receivable (January 1, 2020) Budgeted sales in Quarter 1 (January 1 to March 31, 2020) Budgeted sales in Quarter 2 (April 1 to June 30, 2020) Budgeted sales in Quarter 3 (July 1 to September 30, 2020) Budgeted sales in Quarter 4 (October 1 to December 31, 2020) 47,000 230,000 240,000 190,000 250,000
Expert Solution
Explanation -

Budgeting -

Budgeting is the process of estimating future operations based on past performance. % are estimated and collections are estimated based on past performance.

Budgeting helps to control the operations from getting excess over its budgeted figures.

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