Power Ridge Corporation has forecast credit sales for the fourth quarter of the year as follows: September (actual) October November December Fourth Quarter $66,000 $56,000 51,000 76,000 Experience has shown 30 percent of sales are collected in the month of sale, 65 percent are collected in the following month, and 5 percent are never collected. Prepare a cash receipts schedule for Power Ridge Corporation covering the fourth quarter (October through December). Power ridge corporation Cash Receipts Schedule September $ Sales Collections of Current Sales Collections of prior month's Sales Total cash receipts October $ $ November $ $ December $ $

Power Ridge Corporation has forecast credit sales for the fourth quarter of the year as follows: September (actual) October November December Fourth Quarter $66,000 $56,000 51,000 76,000 Experience has shown 30 percent of sales are collected in the month of sale, 65 percent are collected in the following month, and 5 percent are never collected. Prepare a cash receipts schedule for Power Ridge Corporation covering the fourth quarter (October through December). Power ridge corporation Cash Receipts Schedule September $ Sales Collections of Current Sales Collections of prior month's Sales Total cash receipts October $ $ November $ $ December $ $

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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Assume receivables of $20,000 at the start of the January are all collected during the month; if sales for January and February are $400,000 and $300,000 respectively; the company typically receives payment from 20% of its customers within the same month, 60% the following month, and the remaining 20% by the end of the second following month, how much would accounts receivable be at the end of February?
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Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $113,000 November 141,000 December 207,000 The Accounts Receivable balance on September 30 was $76,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account:…
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Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The sales forecasts indicate that sales are expected to be $85,000, $92,000, and $95,750 for the months of August, September, and October, respec tively. Sales are 60% cash and 40% credit, and credit sales are collected evenly over the following 2 months. No other cash receipts are received. What are the firm's expected cash receipts for the months of August, September, and October?
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Ed’s Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 44,000 June $ 48,000 April 50,000 July 56,000 May 39,000 August 58,000 Sales in January and February were $47,000 and $46,000 respectively. Experience has shown that 5 percent of total sales are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Ed’s WaterbedsCash Receipts Schedule January February March April May June July August Sales $ $ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $ $ $ b. Of the sales…
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