Problem Solving: The following information pertains to ABC Company: Month Purchases Sales 50,000.00 July 20,000.00 August 20,000.00 5,000.00 September 30,000.00 10,000.00 October 25,000.00 8,000.00 November 30,000.00 10,000.00 December 35,000.00 10,000.00 Beginning Cash on hand 80,000.00 Forty Percent (40 %) of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Cash is collected from customers in the following manner: Month of Sales 20% Month following Sales 50% Two months following Sales 25% Amount Uncollectible 5% 4. What is the total cash on hand as of December?

Problem Solving: The following information pertains to ABC Company: Month Purchases Sales 50,000.00 July 20,000.00 August 20,000.00 5,000.00 September 30,000.00 10,000.00 October 25,000.00 8,000.00 November 30,000.00 10,000.00 December 35,000.00 10,000.00 Beginning Cash on hand 80,000.00 Forty Percent (40 %) of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Cash is collected from customers in the following manner: Month of Sales 20% Month following Sales 50% Two months following Sales 25% Amount Uncollectible 5% 4. What is the total cash on hand as of 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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