Cash receipts in the month of April with all your workings. Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data:Total SalesJanuary$60, e0e|February$70,e00March$50,eeaApril$30, eeeWhat would be the budgeted total cash receipts in April?

Formula: Cash collected = Credit Sales amount x cash collection percentage.

Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, an 12% In the second month following sale. The remainder is uncollectible. The following are budgeted sales data: January $60,000| February $70,000 March $50,000| April $30,000 Total Sales

Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, an 12% In the second month following sale. The remainder is uncollectible. The following are budgeted sales data: January $60,000| February $70,000 March $50,000| April $30,000 Total Sales

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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