Q12. The following information is from Tejas WindowTint's financial records. Month Sales Purchases $ 80,000 $ 50,000 April May 70,000 58,000 June 62,000 46,000 July 86,000 64,000 Collections from customers are normally 68 percent in the month of sale, 17 percent in the month following the sale, and 13 percent in the second month following the sale. • The balance is expected to be uncollectible. • All purchases are on account. • Management takes full advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. • Purchases for August are budgeted at $67,000, and sales for August are forecasted at $73,000. • Cash disbursements for expenses are expected to be $15,000 for the month of August. • The company's cash balance on August 1 was $26,000.

Q12. The following information is from Tejas WindowTint's financial records. Month Sales Purchases $ 80,000 $ 50,000 April May 70,000 58,000 June 62,000 46,000 July 86,000 64,000 Collections from customers are normally 68 percent in the month of sale, 17 percent in the month following the sale, and 13 percent in the second month following the sale. • The balance is expected to be uncollectible. • All purchases are on account. • Management takes full advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. • Purchases for August are budgeted at $67,000, and sales for August are forecasted at $73,000. • Cash disbursements for expenses are expected to be $15,000 for the month of August. • The company's cash balance on August 1 was $26,000.

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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