Problem 4-17 Schedule of cash receipts [LO4-2] J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: September. (actual) $ 68,000 Fourth Quarter October November December Credit sales In month of sales One month after sales $ 58,000 53,000 78,000 Total cash receipts Experience has shown that 40 percent of sales are collected in the month of sale, 50 percent are collected in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). J.Lo's Clothiers September < Prev October 6 of 7 November QWERTYUIO ASDFGHJKL ZXCVBNM December Next > 123 Ⓒ space retur
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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![Problem 4-17 Schedule of cash receipts [LO4-2]
J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year:
September. (actual) $ 68,000
Fourth Quarter
October
November
December
Credit sales
In month of sales
One month after sales
$ 58,000
53,000
78,000
Total cash receipts
Experience has shown that 40 percent of sales are collected in the month of sale, 50 percent are collected in the following
month, and 10 percent are never collected.
Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December).
J. Lo's Clothiers
September
< Prev
October
6 of 7
November
December
QWERTYUIO
ASDFGHJKL
ZXCVBNM
Next >
123 Ⓒ
space
retur](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83734d13-bd6b-4c02-8f8a-c9e837c52833%2F5f910b28-da09-499e-8b8a-c95dba766c5e%2Fnl7vqbo_processed.png&w=3840&q=75)
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