Problem 4-18 (Algo) Schedule of cash receipts [LO4-2] Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 35 percent are collected in the month of sale, 25 percent are collected in the following month, and 30 percent are collected two months after sale. $ 42,000 51,000 33,000 48,000 59,000 63,000 ▸ Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale One month after sale Two months after sale Total cash receipts January February Simpson Glove Company Cash Receip Schedule. April March May June July August
Problem 4-18 (Algo) Schedule of cash receipts [LO4-2] Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 35 percent are collected in the month of sale, 25 percent are collected in the following month, and 30 percent are collected two months after sale. $ 42,000 51,000 33,000 48,000 59,000 63,000 ▸ Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale One month after sale Two months after sale Total cash receipts January February Simpson Glove Company Cash Receip Schedule. April March May June July August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 4-18 (Algo) Schedule of cash receipts [LO4-2]
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
April
May
June
July
August
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent
are uncollectible, 35 percent are collected in the month of sale, 25 percent are collected in the following month, and 30 percent are
collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Credit sales
Collections:
$ 42,000
51,000
33,000
48,000
59,000
63,000
In month of sale
One month after sale
Two months after sale
Total cash receipts
January February
Simpson Glove Company
Cash Receipts Schedule
April
March
May
June
July
August](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb476d6c9-ac65-4212-b1b2-fffcad2ea5c2%2Fec54fbdc-3fa0-4bc0-84dc-3c7813672a58%2Frpx8ytw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:OSCO
Problem 4-18 (Algo) Schedule of cash receipts [LO4-2]
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
April
May
June
July
August
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent
are uncollectible, 35 percent are collected in the month of sale, 25 percent are collected in the following month, and 30 percent are
collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Credit sales
Collections:
$ 42,000
51,000
33,000
48,000
59,000
63,000
In month of sale
One month after sale
Two months after sale
Total cash receipts
January February
Simpson Glove Company
Cash Receipts Schedule
April
March
May
June
July
August
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