Show the solution in good accounting form PROBLEM 7-G COLLECTIONS BUDGETMarga Corporation has the following historical pattern ofcredit sales70% during the month of sale4% in the third month after sale15% in the first month after sale1% uncollectible10% in the second month after saleSales on account for the last six months of the year werereported as follows:JulyAugustSeptemberP120,000140,000160,000OctoberNovemberP180,000200,000170,000DecemberRequired:1. Compute for the total cash collections during the 4thcalendar quarter.2. A/R balance on the Balance sheet as of Dec. 31

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Description: Show the solution in good accounting form PROBLEM 7-G COLLECTIONS BUDGETMarga Corporation has the following historical pattern ofcredit sales70% during the month of sale4% in the third month after sale15% in the first month after sale1% uncollectible

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PROBLEM 7-G COLLECTIONS BUDGET Marga Corporation has the following historical pattern of credit sales 70% during the month of sale 4% in the third month after sale 15% in the first month after sale 1% uncollectible 10% in the second month after sale

PROBLEM 7-G COLLECTIONS BUDGET Marga Corporation has the following historical pattern of credit sales 70% during the month of sale 4% in the third month after sale 15% in the first month after sale 1% uncollectible 10% in the second month after sale

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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PROBLEM 7-G COLLECTIONS BUDGET
Marga Corporation has the following historical pattern of
credit sales
70% during the month of sale
4% in the third month after sale
15% in the first month after sale
1% uncollectible
10% in the second month after sale
Sales on account for the last six months of the year were
reported as follows:
July
August
September
P120,000
140,000
160,000
October
November
P180,000
200,000
170,000
December
Required:
1. Compute for the total cash collections during the 4th
calendar quarter.
2. A/R balance on the Balance sheet as of Dec. 31

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