MJ5 Co. had the following budgeted sales for the last half of 2021: July $ 200,000 August $ 225,000 September $ 175,000 October $ 195,000 November $ 260,000 December 420,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: 20% of sales are in cash Collection on credit sales: 60% in the month of sale 30% in the month following sale 10% in the second month following sale The accounts receivable balance on July 1, 2021 consisted of the following: Uncollected June sales $ 60,000 Uncollected May sales $ 15,000 Total Accounts Receivable $ 75,000

MJ5 Co. had the following budgeted sales for the last half of 2021: July $ 200,000 August $ 225,000 September $ 175,000 October $ 195,000 November $ 260,000 December 420,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: 20% of sales are in cash Collection on credit sales: 60% in the month of sale 30% in the month following sale 10% in the second month following sale The accounts receivable balance on July 1, 2021 consisted of the following: Uncollected June sales $ 60,000 Uncollected May sales $ 15,000 Total Accounts Receivable $ 75,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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